Feeds

Gates defends Ballmer's Skype gamble

'A great deal for Microsoft'

Eight steps to building an HP BladeSystem

Somebody big has come to the defense of Steve Ballmer's $8.5bn purchase of web telco Skype - the biggest deal in Microsoft's history.

Bill Gates – Ballmer's colleague and long-time friend – apparently urged fellow board members to support Microsoft's move for the ex-eBay loss maker. "I was a strong proponent at the board level for the deal being done," Microsoft's chairman told the BBC's Hardtalk program.

"I think it's a great, great deal for Skype. I think it's a great deal for Microsoft," he said here.

According to Gates, video conferencing is going to get a lot better than it is today, while Skype pulls in "a fair bit of revenue." Skype reported a $7m loss in 2010, compared to a $418m loss the year before.

While we don't doubt Gates' desire to deflect the heat going Ballmer's way for spending so much on a company with no solid revenue model, he's doing more harm than good. Gates' comments reveal the seven other board members were not behind the deal. Further, it suggests that Ballmer alone was unable to convince doubters to support the deal and that it took the mighty weight of Microsoft's co-founder to swing them. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
Orange spent weekend spamming customers with TXTs
Zero, not infinity, is the Magic Number customers want
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
NBN Co execs: No FTTN product until 2015
Faster? Not yet. Cheaper? No data
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.