In past one year, Microsoft Corporation (MSFT) has lost $2.5bn in its web based business. Company spend $2 to make $1 in revenue. Buying and “integrating” the Internet telephony giant Skype will make the picture even harder. So, again, why spend $8.5bn on Skype considering the company incurred a net loss of $7 million last year on revenue of $860 million? Does Microsoft's have aptitude to combine already loss-making Skype into its own operations better than what eBay did earlier?
Answer- YES
Microsoft Chief Executive Officer Steve Ballmer said Skype is a phenomenal service that is loved by millions of people around the world, and together both companies will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world.
Over the 10 years, Microsoft has spent about $13 billion on nearly 20 acquisitions. Over the past 10 years, the company's revenue and net income have more than doubled and its net profit margin has risen above 30% from the mid-20% range.
About 170 million people worldwide who use Skype regularly for calls and chats. Microsoft believes it can attract hundreds of millions more by weaving Skype into its products.
Here's the current snapshot for Microsoft Corporation (MSFT) and some of its sector and industry peers and direct competitors.
Microsoft Corporation (MSFT) is trading at a price of $24.93, a dramatic change of -0.11 with % change of (-0.44 from its previous day's close. Currently, the company has a Market capitalization (total value of a company in the stock market) of approximately 210.29B.
Google Inc. (GOOG) is trading at a price of $526.69, a dramatic change of -2.86 with % change of -0.54% from its previous day's close. Currently, the company has a Market capitalization (total value of a company in the stock market) of approximately 169.67B
Yahoo! Inc. (YHOO) is trading at a price of $16.51, a dramatic change of -0.04 with % change of -0.25% from its previous day's close. Currently, the company has a Market capitalization (total value of a company in the stock market) of approximately 21.49B
Oracle Corporation (ORCL) is trading at a price of $34.92, a dramatic change of -0.27 with % change of -0.77% from its previous day's close. Currently, the company has a Market capitalization (total value of a company in the stock market) of approximately 176.77B
Intl. Business Machine (IBM) is trading at a price of $169.97, a dramatic change of 0.05 with % change of 0.03% from its previous day's close. Currently, the company has a Market capitalization (total value of a company in the stock market) of approximately 207.21B
Hewlett-Packard Company (HPQ) is trading at a price of $40.2, a dramatic change of -0.21 with % change of -0.52% from its previous day's close. Currently, the company has a Market capitalization (total value of a company in the stock market) of approximately 86.86B
Apple Inc. (AAPL) is trading at a price of $339.96, a dramatic change of -0.54 with % change of -0.16% from its previous day's close. Currently, the company has a Market capitalization (total value of a company in the stock market) of approximately 312.92B
Adobe Systems Inc (ADBE) is trading at a price of $35.27, a dramatic change of -0.06 with % change of -0.17% from its previous day's close. Currently, the company has a Market capitalization (total value of a company in the stock market) of approximately 17.79B
Intel Corporation (INTC) is trading at a price of $23.72, a dramatic change of 0.31 with % change of 1.32% from its previous day's close. Currently, the company has a Market capitalization (total value of a company in the stock market) of approximately 125.82B
Sony Corporation (SNE) is trading at a price of $27.96, a dramatic change of 0.38 with % change of 1.38% from its previous day's close. Currently, the company has a Market capitalization (total value of a company in the stock market) of approximately 28.11B
Electronic Arts Inc. (ERTS) is trading at a price of $23.59, a dramatic change of -0.11 with % change of -0.46% from its previous day's close. Currently, the company has a Market capitalization (total value of a company in the stock market) of approximately 7.89B.
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