Microsoft Buys Skype: Play it Again Sam...

I woke up this morning with the world around me atwitter. Not the finches on the back fence, but with the news that the Evil Empire had acquired Skype. I was temped to post a link to this 2008 VoIP Princess post and go back to sleep. 

"In Skype, Microsoft is buying the leader in Internet voice and video ... " You might guess that this headline was written by some wit on the editorial staff of The Onion. You would be wrong. The source is the NY Times

OK,  what with keeping a finger on the pulse of modern dance performances that draw an audience of three, maybe the Times can't stay on top of everything. But how about Forbes? Columnist Eric Jackson defends the deal even if Microsoft loses money on it: "Even if Microsoft makes no money from this deal, they’ve weakened Google a little from taking this asset from them." and further, "Skype is the leading brand in the IP voice calling and video space...They have a strong competitive threat to Google, Apple (AAPL) FaceTime, and Cisco (CSCO)."

Skype a strong competitive threat to Cisco? Really? I guess Jackson believes that communications fly magically to their destinations by means of the "ether." And vis-a-vis the Microsoft-Google Clash of the Titans: when was the last time you "bing-ed" an address or made a call on your Microsoft Kin? 

I thought so. You'll excuse me for suggesting the emperor might not be wearing pants -- $8 billion pants though they may be. After all, like the song says: "The fundamental things apply, as time goes by." 

For more measured analysis, check out VoIP Watch's Andy Abramson and Phil Wolff at Skype Journal. 






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