Microsoft plans to buy internet telephone network Skype for $8.5 billion, the biggest purchase ever for the world’s largest software company as it seeks to regain ground on growing rivals. The money-losing Skype has 145 million users on average each month and has gained favor among small business users. The deal would also give Microsoft a foothold in the potentially lucrative video-conferencing market. Skype, which is minority owned by eBay, allows people to make calls at no charge but also offers some paid features.
Bankers taking part in the Reuters Global M&A Summit this week told correspondents Quentin Webb and Victoria Howley that despite a recent pickup in global dealmaking, economic fragility, natural disaster and political tumult in the Middle East are hurting corporate confidence and holding back a more robust M&A recovery.
“Britain’s takeover watchdog has unveiled proposals to make hostile bids harder but stopped short of endorsing the most radical proposals floated following the controversial takeover of Cadbury by Kraft Foods,” writes Quentin Webb. *View article
News and views on the fund industry from Reuters and elsewhere:
KKR buys Avantha stake ahead of IPO – Economic Times Paulson’s flagship fund wipes off year’s losses in September – Reuters Nicola Horlick launches film script company – Independent NAPF urges UK companies to ‘mention the pension’ – Reuters
Boeing defense chief Dennis Muilenburg startled many this week when he told the Reuters Aerospace and Defense Summit he would not rule out the possibility of a large-scale merger. Is he sending up a trial balloon to gauge the Pentagon’s reaction? *View article *Read more at the Aerospace and Defense Summit
Nobody can question Eastman Kodak‘s intention in raising some $700 million. Getting a commitment from private equity firm Kohlberg Kravis Roberts to buy up to $400 million of its debt is also a perfectly logical step for the old-economy stalwart as it lumbers into the digital age. What KKR is thinking is another matter.