Tag Archive: microsoft


Microsoft is offering a deal to students on the edge of summer.

Starting May 22, students who buy a new PC for $699 or more will receive a free Xbox 360 4GB console, the software giant said in a blog post today. The offer is available to online shoppers who buy a PC from Dell.com, HP.com, or Microsoft’s online store. Those who want to head to a retail outlet can find the deal at Best Buy or Microsoft’s stores.

In order for students to get the free Xbox 360, they will need to have .edu e-mail address at the time of purchase. If they don’t have a .edu e-mail address, they can go to a retail store and present their student IDs.

Microsoft’s Xbox 360 4GB console currently retails for $200. The hardware features built-in Wi-Fi and comes with a black Xbox 360 wireless controller. Those who want additional storage will need to buy a hard drive separately.

The Xbox 360 has been performing exceptionally well at retail as of late. According to research firm NPD, the software giant sold 297,000 Xbox 360 units in April and bested Sony’s PlayStation 3 and Nintendo’s Wii. Microsoft said that the Xbox 360 has been the best-selling console in 10 of the last 11 months.

Microsoft’s free Xbox 360 offer is valid through September 3, or while supplies last. The offer will be coming to Canada and France “soon,” Microsoft said.

Courtesy : CNET

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The deal is done. Microsoft is buying Skype for $8.5 billion in cash in its first sizeable acquisition since August 2008, when the Redmond software giant spent $486 million on Greenfield Online.

In fact, this is Microsoft’s biggest financial bet to date in terms of M&A, trumping its $6 billion+ purchase of aQuantive, which dates back to May 2007, in size.

The purchase price includes the assumption of Skype’s debt.

The agreement has been approved by the boards of directors of both Microsoft and Skype.

Skype will become a new business division within Microsoft, and its current chief executive Tony Bates will assume the title of president of the Microsoft Skype Division, reporting directly to Microsoft CEO Steve Ballmer.

The deal was first reported by GigaOM‘s Om Malik (he does that sometimes) and later confirmed by the Wall Street Journal, who cited people familiar with the matter.

The $8.5 billion question: did Microsoft overpay for Skype?

Perhaps, perhaps not. Only time will tell. As always with these things, the many tech industry pundits and analysts will look at this deal from all possible angles and then some, and still only a handful will end up being somewhat accurate when we look back in a couple of years.

From a non-financial point of view, the acquisition makes a ton of sense today, though.

Skype digitally connects dozens of millions of people on a daily basis, enabling them to communicate with each other through voice calls, chat messages and video conferencing.

There’s no doubt it’s a big brand on the Web (with both consumer and enterprise appeal, worldwide at that), and is poised to keep mattering in the next decade and beyond.

In August 2010, Skype filed to go public, expecting to raise $1 billion, but not long after appointing a new CEO, former Cisco SVP Tony Bates, the company put its IPO plans in the freezer while it looked for ways to generate more revenue from the popular service.

Skype’s 2010 revenue was $860 million, adjusted EBITDA was $264 million, and – as many are tripping over each others to point out – the company actually lost $7 million last year.

But looking ahead, chances for the business to keep growing, perhaps even acceleratingly so, are fairly big. In that sense, it’s a valuable asset to own (and to keep out of others’ hands).

The acquisition is subject to regulatory approvals and other customary closing conditions.

Microsoft and Skype said they “hope to obtain all required regulatory clearances during the course of this calendar year”.

Microsoft also pledged that it would “continue to invest in and support Skype clients on non-Microsoft platforms”.

Since its former owner eBay sold the company to a consortium of investors formed by Silver Lake Partners, Joltid (the company founded by Skype’s original founders, Niklas Zennstrom and Janus Friis), the Canada Pension Plan Investment Board and Andreessen Horowitz in November 2009, the company has been pursuing an aggressive strategy to be available everywhere, anytime, both in enterprises, the living room, even classrooms and, very importantly, on smartphones.

Microsoft, of course, has the exact same ambitions of ubiquity, and Skype and recently acquired Qik fit nicely into many of its current product offerings: think Windows Phone (combined with Nokia), Xbox and Kinect, Bing, Office 365, Windows Live Messenger and other Live products, Lync, Outlook, SharePoint, Internet Explorer, Azure, and so on.

The purchase also provides Microsoft with a wealth of p2p and collaboration technology expertise and intellectual property, an increasingly important asset to have these days.

It also brings reach: Skype’s user base is comparable to that of Facebook in terms of size (more than 600 million registered users, that is) and the social network in fact has tie-ins with Skype already on a product level.

Courtesy : Techcrunch