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Microsoft Buys Skype for $8.5 Billion

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Replying to:  In CASH?!?!?!? by dparra137   May 10, 2011, 12:53 PM

Wait...you're joking right?

by MadLib    May 10, 2011, 7:57 PM

Do you think that Microsoft (or any company, for that matter) would literally use paper money for a transaction of this size?

The days of large cash transactions are over, brah. Back in the day before computers, banks (you know, the institutions consumers and companies use to handle their money) used very, very large denomination bills to transfer money. There used to be a $100,000 bill, but that was back in the 20's, and in that time, there was no such thing as an $8 billion company. Thus, never, ever, ever, EVAR, no matter what time period, would a company use paper money to purchase something in the billions - or even millions - of dollars.

What this article means is that Microsoft will not be trading shares to buy the company. A lot of time what happens with these mergers is a certain amount of cash (again, this means immediate transfer of money) will be offered as well as a significant portion of stock. In this case, Microsoft found it more viable to straight up pay for Skype than entangle themselves in granting too large of an ownership of Microsoft to the owners of Skype.

IDK if I should have even written this much. I feel like my effort will be wasted.

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