10 May 2011


Are the big boys taking over?

It does seem that in the world of the internet there are three names that everyone knows, Google, Facebook and Microsoft, these companies have taken over the world wide web and making everything in it their own. 

This could be a nice little earner for those smaller companies out there, in 2006 Google snapped up YouTube, the original owners of the largest video streaming site would have laughed all the way to the bank.

Now it's Microsoft's turn. They are in talks to buy the internet phone service Skype, according to an article on the BBC news website the deal could be worth around £5.2 billion which would make it Microsoft's largest acquisition to date.

Skype, based in Luxembourg has 663 million users worldwide, in August last year it announced plans to share flotation but now this has been put on hold. In 2006 the internet based auction site eBay bought Skype for $2.6 billion before selling a 70 per cent stake in in 2009 for $2 billion. Skype is currently owned by a group of investors, led by private equity firms Silver Lake and Andreesen Horowitz. 

What does this mean for the internet though, is it a good thing that the major internet giants are running away with the majority of smaller internet businesses and in the process they are effectively taking over. Facebook and Google are seen as the internet kings, with huge audiences and vast wealth. Could the future of the internet be a handful of giants ruling supreme over the smaller businesses.

As the internet becomes more lucrative and the technology increases it is becoming a parallel universe of psychical companies. People can now make millions of pounds without even having an office space, that's just how the internet can work. As previously stated, Facebook and Google dominate the news these days, so it's good to see that the company that has been around since the birth of the internet is still going strong.

When the news is covered with doubt around the global economy, it's always good to read about things progressing. It seems that the numbers involved in this article mean that internet based companies such as Skype are not feeling the pinch, with the technology that Microsoft bring to the table and the input of money, I feel that in future we will be seeing a some interesting innovations coming from the Skype camp in years to come.


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