Skype deal done smartly – Microsoft saved on the consultancy fee
Skype deal can easily be termed as one of the most prominent pacts in the recent times, especially looking at all the acquisitions done in the tech domain lately. Inside sources say that the transaction has been done very smartly, specifically as the top officials have been drawing the outline of the agreement well before it was executed. Microsoft reportedly has saved close to 25 to 30 million dollars by not deploying any advisor to the deal.
"We thought it made sense to go directly to Silver Lake which is what we did, and that seems to have worked out well," Microsoft Chief Executive Steve Ballmer told Reuters.
Ballmer further added, “Chief Financial Officer Peter Klein led Microsoft's deal making process for the takeover.”
On the other hand, Skype's advisors, Goldman Sachs and JPMorgan, will split about $30 million to $35 million in fees, according to Freeman Consulting. Apparently, the 8.5 billion dollar take over of the internet telephony service company, Skype by the IT giant Microsoft is among the top events in the news arena anywhere on the internet and paper mode currently.
Microsoft has used investment banks for many of its notable deals in the past. More than $220 million has been given in the form of investment-banking fees since 2000. Lazard, Deutsche Bank and Morgan Stanley have been among the biggest gainers -- $40 million, $23 million, and $18 million to their credit respectively, as per the figures.
Clearly, Microsoft has realized that it needs to take smart decisions in the times to come as slowly and steadily, others in the IT province are making some serious progression to keep up with the entity in the much heated IT battle.