Like many, I was surprised to hear that Microsoft (NASDAQ:MSFT)had bought internet phone and video service Skype for $8.5bn last week, especially considering Skype incurred a net loss of $7m last year on revenue of $860m. And although the $8.5bn price tag is well over what its worth, with most analysts valuing Skype at around $4bn based on the company's 2010 revenue, they did manage to grow their user base by nearly 40 percent to 145m users last year.
In its press release announcing the deal, Microsoft played up the potential synergies between Skype and its own communications offerings, including its Lync VoIP platform, Outlook mail, Messenger instant-messaging, Hotmail Web mail and Xbox Live gaming service.
The fact that Skype will support Microsoft devices like Xbox and Kinect, Windows Phone and a wide array of other Windows devices, spells tremendous opportunity for the channel.
With social networking getting more and more popular and devices embracing the internet more, Microsoft will really try to put Skype in all Windows powered devices and perhaps will strike deals to incorporate Skype in innovative products like Smart TVs and more, bringing benefits to both consumers and enterprise users and generating significant new business and revenue opportunities.
At VIP, we have recently bought on board a number of different vendors to enable us to leverage the surging popularity of video chat using smartphones, tablets and desktop computers. FaceVsion, a vendor of Skype-compatible HD webcams is one of these for example where this tie-up will help generate significant revenue opportunities.
Other areas looking poised for growth via this development include:
• Future versions of Windows will most definitely incorporate Skype, so opportunity for selling compatible peripherals to aid in peer-to-peer communication, such as HD webcams.
• Skype enabled tablets, this will be a welcomed feature for further penetration of the tablet market
• Windows powered smartphones with Skype embedded will offer substantial opportunities in the enterprise market.
Even though Microsoft’s largest acquisition (dollar-wise) in the history of the company, has had mixed reactions, I think it presents some exciting opportunities ahead.
