The Skype app on Android is really only barely functional, and what is more, the total lack of support or interest in fixing bugs from their side is almost comical. A couple of months ago I fixed a problem where the sound was coming out of the back speaker rather than the earpiece, a problem that seems to affect many people.<p>I located the problem and fixed it using baksmali/smali. I then opened a ticket on their public Jira server describing the problem, solution, and even attached the patched .apk. Months later they <i>still</i> haven't merged it into Skype proper, even though it's literally a two-line fix. In the meantime loads of people cannot use Skype on their phones.<p>The fact that a company that is supposed to be worth 1 trillion USD doesn't have the manpower or interest to fix such a simple bug that totally breaks their product for a lot of people should tell us something. From the outside it looks like all the skilled people have left a long time ago, and I wonder if they'll be able to maintain their market position like this.
I don't see many reasons for Facebook to buy Skype:<p>1) Technology: Skype's core technology is their P2P technology. They have their own clients for PCs and mobiles. Facebook resides in the cloud, and it works from the browser. This is a huge difference on PCs/Macs, but less so on mobiles, where Facebook also has apps.<p>2) Price: At $3-4Bn Skype would be by far Facebook's biggest acquisition, as all the others have been under $100M. As they don't have the amount of cash that public companies like AAPL, GOOG or MSFT have (at least not yet), it's quite a big effort for them. There need be a lot of synergies to justify paying this kind of money.<p>3) Culture: Skype is older than Facebook, and has European roots. Facebook has so far made small acquisitions (more like acqhiring), they don't have any experience with integrating a big company like Skype.<p>4) Business model: Skype is going for the enterprise market (see the appointment of the new CEO last autumn), and selling subscriptions. Facebook is going for consumers, and selling ads.<p>Overall, I think a better option for Skype would be an IPO, a telco acquisition, or maybe a Google acquisition.
Andreessen was an investor in Qik.<p>Andreessen did a huge deal to buy Skype.<p>Andreessen is an investor in Facebook AND on the board.<p>He sold Qik to Skype for $100M and now he's going to sell Skype to Facebook for billions?<p>"No conflict, no interest" indeed.
Perhaps what Facebook want is all of Skype's customers' credit card numbers. Linking them with Facebook accounts may help boost all of their future 30-percent-comission endeavors.
Upcoming mashable/techcrunch/other-tech-gossip-site headlines to be linked at HN:<p><pre><code> * Why Facebook will buy Skype
* This is not a bubble
* Facebook buying Skype is the dumbest thing ever
* Skype's two hundred competitors that Google will buy
* That settles it, we're in a bubble
* Why Google/Microsoft/Yahoo/Apple should buy Skype
* How I flipped my VOIP company for $4 billion in funny-money</code></pre>
At first I wasn't sure how Skype played into FB's strategy but I guess it makes sense. Skype would come with a plethora of talent, which facebook is known to spend money for. Also, the Skype technology would allow FB to fill out the video communication side of things that they have yet to tap.
Does Facebook have $3-4B in cash? I didn't think they had that much money. And even if they do, they wouldn't have much left after the deal to move other big plans forward. I guess if they go public first, then it could happen.
it's not overly surprising considering the recent Facebook<-> Skype integration and Skype's expansion to the USA (new office in Brisbane, CA).<p>I'd say it's more like likely a 'strategic partnership' than a buy-out. Having said that though, they're both private companies, so it may not as straight forward as a normal 'merger'
I'm curious what the sources would have to gain by leaking this information? In the Reuters article it says they had "direct knowledge of the discussions", why would they risk their jobs to leak something like this? I don't get it.
the first thing i thought of was video chat integration into facebook chat exactly the same way google video chat is integrated into gchat. from there, they could monetize on paid group chats, calls to numbers since fb's new messaging is tied to mobile, etc.
skype is only a good option if they want users. because the only appeal of skype is the userbase. really.<p>if facebook has the penetration everyone believes they have, skype would be irrelevant. buy any other media streaming company with an actual decent codec and the rest is commodity.
"It's the end of the world as we know it." However, I don't feel fine.<p><a href="http://www.youtube.com/watch?v=Z0GFRcFm-aY" rel="nofollow">http://www.youtube.com/watch?v=Z0GFRcFm-aY</a>