

The skeptics point to the company's $6 billion buyout of aQuantive in 2007 as a failure as well as problems with Hotmail and Danger.ĬEO Steve Ballmer preferred to look at the positives of the deal on Tuesday. Many observers believe that internal politics at the company will have a negative effect on Skype. While the Skype brand and service have been hailed wholeheartedly as wonderful assets, the steep price tag as well as Microsoft's past acquisition failures have some investors concerned. They just probably paid too much for it." The market had a similar opinion, as some investors voted with their feet on Tuesday, sending MSFT shares down 0.62% to $25.67. Now, I don't like it." He added, "Everybody I know uses it and I am glad Microsoft owns it. Initially when I first read about it, I hated the deal. Whitney Tilson, who runs hedge fund T2 Partners and is a MSFT shareholder, told Reuters, "I wish they had not done it. Unfortunately, it might end up backfiring. This is the backdrop that the company was facing before this Skype deal was announced.įor this reason, on the surface, it almost looked like the company may have forced this deal a little bit, maybe to relieve some pressure. On the plus side, investors probably won't go broke holding MSFT, but things need to change for anyone to make any money. On the 5-year chart, the shares are up 7.86% and the stock has lost 11.3% over the last 52-weeks. Over the last 10 years, MSFT has lost more than 27%. The stock price has also been extraordinarily disappointing to investors.
