Why is Skype Spending So Much on the GroupMe Acquisition?

  • Skype, which is in the process of being acquired by Microsoft, is purchasing GroupMe, a year-old startup with 20 employees known for its popular cross-platform messaging system that works between smartphones.
  • Skype will reportedly pay $85 million for the company, which GigaOM suggests raises the question: “Why is Skype spending so much money on a relatively small company with a relatively small user base when compared to Skype?”
  • While Skype is a partner with Facebook, it has to be concerned that competition in voice and video communication is becoming intense with Facebook Messenger, Google Huddle and Apple iMessage. (GroupMe adds group messaging.)
  • Skype will still need to decide if it is a product for consumers or a collaboration tool for corporations.
  • ETCentric staffer Dennis Kuba raises another interesting question: “Is voice and video communications becoming commoditized?”

4 Comments

  1. $85M is a lot to pay for the me-too answer to Google+ Huddles. But Microsoft is playing catch-up, and this is part of the shopping list of items they’ll need to get in the game.

  2. The whole Microsoft buys Skype (for $8.5 billion) didn’t seem to make a whole lot of sense to me. Feels a bit like a “NewsCorp/MySpace redux. This space is so fluid — hard to justify assigning a premium price to a company that feels somewhat tenuously positioned as a “category leader.” (But that’s a bit off topic, I guess!) Yes, voice and communications ARE being commoditized (just ask the phone companies!)

  3. $85M is a lot to pay for the me-too answer to Google+ Huddles. But Microsoft is playing catch-up, and this is part of the shopping list of items they’ll need to get in the game.

  4. The whole Microsoft buys Skype (for $8.5 billion) didn’t seem to make a whole lot of sense to me. Feels a bit like a “NewsCorp/MySpace redux. This space is so fluid — hard to justify assigning a premium price to a company that feels somewhat tenuously positioned as a “category leader.” (But that’s a bit off topic, I guess!) Yes, voice and communications ARE being commoditized (just ask the phone companies!)

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