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Microsoft acquisition of Skype

Description
Prepare a report of 4 pages about Microsoft acquisition of Skype.
Follow Exactly the Instructions in the Attached Doc.

It?s a report related to an accounting course that disuses the topic of business acquisitions

Requirements:

– Prepare a report of 4 pages about Microsoft acquisition of Skype answering the questions below.
– Attach a copy of all the material (Financial statements, graphs, copy of some articles) used in the research and add a reference page at the end.
– Use simple language as I am not a native speaker.

– The report should have small introduction and conclusion and several paragraphs that provide clear, concise and thorough responses to each of the following question. Don?t write the report as a form of questions and answers:
– Background about each party involved in the transaction.
– What were the motives of the different parties?
– How was the transactions structured?
– How is the transaction accounted for on the books of all parties involved? Show this using the related financial statements. (Show both the consolidated financial statements after the acquisition and the separate financial statements of both companies before the acquisition. Shows how the acquisition affects the consolidated financial statement).
– What are the implications of this transaction?
– How did the stock market react to the news (provide graphs)?
– Anything else of interest about this transaction before, during, or after (this part is the most important show any interesting issue regarding the transaction with providing an explanation that shows critical thinking?
– What is your assessment of this merger, now that time has elapsed (provide a discussion that shows depth analysis)?
Resources :

– Annual reports including the front management discussion, and the back part including financial statements and their footnotes
– Use the attached PDF. You will find some of the required financial statements and other useful information.
– Other resources such researches, media releases.

IMD 28.03.2013
MICROSOFT?S ACQUISITION OF SKYPE
Researcher Dr Jialu Shan prepared this case under the supervision of Professor Salvatore Cantale as a basis for class discussion rather than to illustrate either effective or ineffective handling of a business situation.
They paid a headscratcher of a valuation.1
Patrick Becker Jr., a principal at Becker Capital Management On 10 May 2011, just days after reports in Reuters2 that both Facebook and Google were considering a possible purchase of, or joint venture with, the leading internet communication company Skype, Microsoft, after years of underperforming, announced plans to acquire the company for $8.5 billion in cash ? a vast amount during this economically uncertain time. In the days following the announcement, investors and analysts puzzled over Microsoft?s reasons for making this deal. Founded in 2003, Skype had long struggled for profitability. In 2010, it had made a net loss of $7 million on revenues of $860 million. Although it had a large user base, the business still had no earnings. This was the second time Skype had been purchased since eBay had bought it in 2005. eBay subsequently sold a majority stake of the company in the last quarter of 2009 to an investor group led by Silver Lake Partners, at a valuation of less than $3 billion. eBay?s acknowledgement of an ?overvalued Skype? was still fresh in people?s minds when Microsoft acquired it for an unexpectedly significant premium ? around twice its recent valuation. How did Microsoft arrive at this calculation? Did it pay too much? What was the motivation behind this deal?
Copyright ? 2013 by IMD,Lausanne, Switzerland (www.imd.org).No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means without the permission of IMD.
1 Rigby, Bill. ?Analysis: Investors Slam Microsoft?s Skype Deal.? Reuters, 10 May, 2011. 2 Damouni, Nadia, and Clare Baldwin. ?Exclusive: Facebook and Google Mull Skype Deals.? Reuters, 4 May 2011.
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Skype Headquartered in Luxembourg, Skype was founded in August 2003 by entrepreneurs Niklas Zennstr?m of Sweden and Janus Friis of Denmark. As it became known for its free software- based communication platform, the company grew rapidly and soon occupied a global leading position in the field of communication over the internet, with over 600 million registered users in 2010.
Company Products Skype was an internet-based software that enabled people to communicate and collaborate through instant text messaging, voice and video conversations with peers. Calls to other Skype users were free of charge. For a low rate, users could also call landline telephones and mobile phones (SkypeOut) and receive calls from regular telephones by dialing a user?s Skype phone number (SkypeIn). Later, Skype also offered paid features, such as SMS messaging from Skype to mobile phones, voicemail and internet access with Skype WiFi hotspot (refer to Exhibit 1 for Skype?s features). In early 2011, Skype introduced a new group video calling service for Skype Premium subscribers, which enabled two or more users to set up a video conference. With Skype, long distance communication became cheap and easy. The application could be downloaded onto computers, laptops, mobile phones and other connected devices for free. Since the first version of the application the Skype community had continued to grow. In 2010, Skype 5.0 for Windows was available in 32 languages and continued to be a worldwide communication platform.
Takeover History The first acquisition took place just two years after its foundation. In October 2005, eBay bought Skype for $3.1 billion, hoping to bolster trading on its online auction site. Two years later, eBay announced that it was taking a charge of $1.43 billion3 related to the acquisition and admitted that it had overpaid by nearly 1 billion since Skype had failed to meet the company?s expectations. eBay then decided to shed the business and in 2009 sold around 70% of Skype to an investor group led by Silver Lake, including Joltid Limited and Skype founders Niklas Zennstr?m and Janus Friis, for $1.9 million. Other investors included the Canada Pension Plan Investment Board (CPPIB) and Andreessen Horowitz. The communication company was valued at $2.75 billion (refer to Exhibit 2 for Skype?s valuation history). In August 2010, Skype filed for an IPO, stating its intent to go public, but later delayed its plans.
Financial Overview Skype had witnessed astonishing growth since its launch in 2003. It had 663 million registered users in 2010 of which around 145 million were active on a monthly basis, using 207 billion calling minutes. These figures were expected to increase at double-digit growth in the next couple of years.
3 This amount was made up of a $900 million internal devaluation of Skype and $530 million to meet future pay-outs to shareholders.
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Despite Skype?s expeditious growth, there was a huge gap between the number of registered users and the number of paying users. In 2010 only a small percentage of its users were paying for its services (about 8.8 million monthly paying users) (refer to Exhibit 3 for Skype?s customer metrics). As a result, Skype consistently lost money since its revenues came primarily from the sale of paid communications services products. The company?s total revenue in 2010 was $860 million, but it made a net loss of $7 million (refer to Exhibits 4a and 4b for Skype?s key financial performance).
Microsoft Founded in 1975 by Bill Gates and Paul Allen and headquartered in Redmond, Washington, Microsoft had long been established as the world?s leading software company. Its success started in the early 1980s when IBM asked Microsoft to develop an operating system for its new line of PCs. Microsoft went on to play a huge role in shaping the evolution of computers over the following two decades. The company provided a wide range of software products, services and solutions ?that help people and businesses to realize their full potential.? Its best-selling products, Microsoft Windows and Microsoft Office, dominated the personal computer operating system and office suite market. As of 2010, Microsoft reported total annual revenues of $62.5 billion with net income of $18.8 billion and had nearly 90,000 employees worldwide. While it was making billions of dollars from its software products for personal computers, Microsoft?s business was gradually slowing down in the field of technology (refer to Exhibits 5a and 5b for Microsoft?s key financial performance).
Pre-deal
Hungry Behemoth At a time when desktop and laptop computers still dominated the PC world, Microsoft was the undoubted king of technology. By late 2000, it had reached a market capitalization of $510 billion, making it the world?s most valuable company. However, over the following decade the industry began to experience a transition from traditional PCs to mobile devices and cloud computing. Microsoft was clearly unprepared for a future in which mobile devices and internet-based services would dominate. In 2010, it was dethroned from its number one position by longtime rival Apple. After the 2000s, as Apple, Google and Facebook whizzed by, Microsoft struggled badly in its many efforts to become a larger force in consumer offerings such as smartphone, internet searching, social networking and music. Floundering in the shallows of the smartphone market, Microsoft was far behind Google and Apple. Its market share was in single digits, with little evidence of any significant growth. Its online service division, including Bing, MSN and advertiser and publisher tools, continued to suffer heavy losses. It seemed that Microsoft?s expensive efforts ? the $6.4 billion acquisition of digital advertising firm aQuantive in 2007 to chase Google in the online search and advertising market ? were in vain. Microsoft?s counterattack to defend its leading position in other areas was also ham-handed. Its new media player Zune introduced in 2006, which was supposed to compete with Apple?s iPod device and iTunes software, was not impressive. Even in its dominant area, operating systems, it was losing market share to Apple?s Mac OS due to its poorly designed Vista, which was rapidly replaced by Windows 7. These latest developments were increasingly worrisome to Microsoft and its investors.
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Nevertheless, Microsoft?s ongoing influence in the post-PC world should not be underestimated. Its revenues ? mainly from Windows, Office Software and subsequently the Xbox 360 ? continued to increase. In May 2010, Microsoft had $50 billion in cash, with over 80% domiciled internationally. To reduce the gap with sector leaders, Microsoft had to respond to changes in the industry quickly. Acquisitions seemed to be a shortcut to the market and growth. Microsoft?s audacious attempt to acquire Yahoo for $44.6 billion, which was later rejected, was a case in point. Microsoft was looking for the next takeover target.
Skype: All Inclusive Brand and Networking Skype?s popular blue ?S? icon was loved by millions of people around the world and the phrase ?Let?s Skype? was understandable everywhere. For most people, Skype meant sitting in front of a computer talking to people, sometimes with video chat, but often for free. Importantly, Skype could be used on multiple platforms, from laptops to tablets, from iPhone to Android. But Skype was never alone in the market. As it grew, Google moved into direct competition in the US by offering free services to its Gmail users in the US and Canada to call landlines and mobile phones from their e-mail inbox. Like Skype, it also provided services to international calls at low rates. On the mobile front, Apple built its default video calling feature, FaceTime, into the iPhone. Skype was able to weather these attacks and went from strength to strength. When Microsoft acquired Skype, it had 170 million monthly connected users and that number was growing by 600,000 new registrations every day. The Skype iPhone application ? one of the top 10 free iPhone applications of all time4 ? had been downloaded by over 50 million people since FaceTime had been released.5 Extending Real-time Communication The video chat market was growing rapidly. The number of people participating in video chats was forecast to grow 14 times to more than 140 million people worldwide by 2015,6 with 11 billion video chat calls being made. Skype had a strong presence in this growing market ? 4 out of 10 Skype calls were video chats ? and it would continue to play an important role in this market. Another important area related to real-time communication was television. TVs were increasingly connected to the internet, which enabled people to participate in video chats in their living room. Skype had signed deals with television manufacturers such as Samsung Electronics and Panasonic to embed its technology in their products. Big screen TVs and Microsoft?s motion and voice sensing Kinect controller provided a more immersive video conferencing experience.
4 Skype website. 5 Woyke, Elizabeth. ?Skype: New iPad App Being Adopted Faster than iPhone App.? Forbes, 8 September 2011. 6 ?The Consumer Video Chat Market, 2010-2015.? GigaOM Pro Report, 2010.
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Social Networking Microsoft highly valued its partnership with ?social networking? leader Facebook. Since Skype?s business focused on its core communication services of mobile and video, and how they intersected with social networking, the acquisition would enable Microsoft to become more relevant in the social networking market. Under Silver Lake?s Ownership Skype?s previous owners, Silver Lake and its partners, had made impressive progress. They had recruited ?an outstanding senior management team,?7 including a new chief financial officer, chief marketing officer, chief legal and regulatory officer and a new general manager of Skype Enterprise. It settled the intellectual property litigation with Zennstr?m and Friis, so the company acquired the patent of its peer-to-peer network. In early March 2011, Skype opened up new revenue opportunities. By establishing advertising sales partnerships in the US (Meebo), the UK (Ad2one) and Germany (Str?er Interactive), it was able to start selling advertising. The first advertisers included Groupon, Nokia, Universal Pictures and Visa.
The Deal: A Strategic Move
Skype and Microsoft share a vision for how real-communication can really enhance both consumers and business lives across a multitude of devices [?] from a strategic perspective, and from a financial perspective, we think this is a really exciting opportunity for us, and we?re excited to move forward with it.
Peter Klein, Microsoft?s CFO at the Microsoft?s conference call, 10 May 2011
Expensive Deal The whopping bill for Microsoft?s purchase of Skype made it the largest to date in the company?s history. After the acquisition, Tony Bates assumed the title of president of the Skype Division at Microsoft, reporting directly to CEO Steve Ballmer. With revenues of $860 million and EBITDA of $264 million in 2010, Skype?s $8.5 billion price tag represented 10 times sales and 32 times EBITDA. Microsoft was in effect paying almost $1,000 for each of the 8.8 million monthly paying users, leaving investors and analysts puzzled about how it had arrived at that calculation (refer to Exhibit 6 for Microsoft?s stock change in the week/month of the acquisition).
Staying Connected Ballmer had high hopes of the acquisition:
Together, we will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world.
7 ?Microsoft to Acquire Skype.? Microsoft News Center, 10 May 2011. http://www.microsoft.com/en- us/news/press/2011/may11/05-10corpnewspr.aspx.
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Zennstr?m also expressed his support for the future of the deal:8
I think that Microsoft has a huge opportunity to integrate it into a lot of their different services. While Skype had rarely made any profit, its huge, loyal customer base and underlying technology could provide valuable support in Microsoft?s attempts to gain users for social and mobile services in areas in which the software giant had invested heavily but was still far behind competitors like Apple and Google. Not only would this move make Microsoft relevant in the consumer internet industry, it also gained 13% of the international call market in 2010. In addition to Skype?s strong brand and networking structure, integration would be a top priority from Microsoft?s perspective. Skype?s functionality allowed for interoperability between various products, including Windows Live Messenger, Lync, Xbox Live and Windows Phone, at work and at home (refer to Exhibit 7). Windows Live Messenger (WLM) WLM, previously known as MSN Messenger, was an instant messenger service. It had grown considerably since its launch in 1999 with photo gallery, video calls, games and applications being added to its service package. In this respect, there was considerable overlap between WLM and Skype and with more than 330 million active users per month in 2009 ? twice as many as Skype for the same period ? WLM appeared to be more successful. Regardless of the similarity of their services and the potential user base overlap, the key difference was that 8.8 million Skype users were paying for the service. Further product integration could create more cross-selling and up-selling opportunities for Windows Live and Skype users. For example, WLM could replicate Skype?s paying services across platforms or, as an ad-supported service, WLM could help Skype generate more advertising revenue, which historically had been a challenge for Skype. Lync Lync was Microsoft?s enterprise-ready unified communications platform allowing users to connect through instant messaging; audio, video or web conferences; or phone calls. It was more enterprise-oriented and focused on business communication while Skype was better known as a consumer product although it had gained some traction in the business sector as well. According to Skype?s internal research, in the first quarter of 2010 approximately 37% of Skype consumers used it for business purposes. The integration of Skype and Lync could enable customers to embrace their suppliers and business partners without constraint and enhance Microsoft?s communication server for its enterprise class customers. Xbox 360 Video Console Microsoft entered into the games console market in 2001 and soon became highly successful. Its newest generation, Xbox 360, allowed gamers to play online with friends or strangers. Over time Xbox 360 evolved into a home entertainment center: gamers were able to download games, watch movies and interact with each other using either voice or text communication (and subsequently video communication via Kinnect). Some of the online features required users to subscribe as Xbox Live Gold members for an annual fee of $49.99.
8 Abboud, Leila. ?Skype Founder Sees Upside for Microsoft after Deal.? Reuters, 25 May 2011.
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Online social gaming was a fast-growing area and served as an important way of motivating consumers to sign up for and continue using Microsoft?s services. On 6 January 2011, Microsoft?s Xbox 360 passed the 50 million units sold figure and reached over 30 million Xbox Live subscribers. Integrating with Skype could boost the number of Xbox Live Gold memberships since users would use the Xbox as a communication tool in their living rooms. Windows Phone According to Euromonitor International, the Smartphone market was far from realizing its full potential and was expected to reach close to 900 million units sold globally between 2010 and 2015. Unfortunately, Microsoft was largely irrelevant in this booming market. With the increasing broader use of mobile phones ? in addition to their basic function of making calls and sending text messages ? operating systems had become the central part of mobiles. Google?s Android, launched in 2006, experienced a dramatic rise to become the world?s leading mobile platform. Apple?s exclusive operating system iOS had also enjoyed a significant market share in the Smartphone world since 2007 due to the success of the iPhone and iPad. Microsoft lagged far behind, only responding to this transition in late 2010 when it launched Windows Phone 7. In February 2011, Microsoft entered into a strategic partnership with Nokia, which adopted the Windows Phone as its main smartphone operating system in an effort to rebuild its fortunes. Integration with Skype and strong support for real-time video communication was expected to expand the appeal of the Windows 7 mobile operating system.
The Future On the day the acquisition was announced at a news conference in San Francisco, Bates stressed Skype?s advertising strategy and how Microsoft would help to develop new revenue stream:
We?re just scratching the surface of that. We just started in ads. We have the ability right now within the new Windows client to put a home page, think of it like home page takeover type ad. [?] [W]e think advertising is a very powerful monetization stream for us. [?] We want to approach the market, really, around a rich media approach, though, so if you see the ad it?s a very rich experience. You can click on the ad. That can pop out. You can see a piece of animated rich media with advertising. So, we really think that it fits the user base of where we’ve been moving, which is to really have this immersive experience.9 According to equity research by Credit Suisse, there was ?considerable, overlooked potential in monetizing the ?eyeballs? of the large and growing installed base of free Skype users through display ads.?10 Based on some ?conservative? assumptions, it was estimated that it would add at least $376 million in revenue in 2012 and was expected to grow to over $3.9 billion in 2020 by incorporating display ads on the Skype platform (refer to Exhibit 8 for more details). Skype was on track to returning a promising profit. However, as one analyst for McAdams Wright Ragen commented:
9 Skype press conference: Steve Ballmer and Tony Bates. Microsoft News Center, 10 May 2011. http://www.microsoft.com/en-us/news/exec/steve/2011/05-10skype.aspx. 10 Winslow Philip, Dennis Simson, and Sitikantha Panigrahi. ?Skype?s Overlooked Display Ad Potential.? Credit Suisse Analyst Report, 24 May 2011.
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Over all, we believe the ultimate success of the acquisition will rest on Microsoft?s ability to execute on product integration in a timely manner and retain key Skype talent. 11 Microsoft was already a late arrival to the internet and mobile market. Whether Skype would prove worthwhile would depend on how quickly Microsoft could integrate it into its vast array of product lines and capitalize on the opportunities mentioned above. In addition, to obtain a return on its hefty investment, Microsoft also had to be careful to retain key Skype talent. EBay?s failure was the best example: the turbulent relationship between the Skype founders and eBay had led to significant leadership churn,12 which in turn had resulted in poor performance.
So, Was Skype Really Worth $8.5 Billion? Undoubtedly, Microsoft paid a premium for Skype, representing a 350% profit for Silver Lake and its partners in just 18 months ? for a business that still had no earnings. However, there was a lot more to the deal than it seemed on the surface. Skype brought with it the brand, the network, the technology and the synergies. Finally, since the technology industry consisted of just a small number of large players, fierce competition for assets meant that companies had to make fast and sometimes risky M&A decisions. While some technology experts were skeptical about the acquisition, one thing was certain: the deal kept Skype out of the reach of Microsoft?s rivals in the enterprise market ? Google, IBM, Cisco and Facebook ? thus avoiding a double whammy.
11 Parakh, Sid. ?Skype Acquisition.? McAdams Wright Ragen, 11 May 2011. 12 Various sources from Wikipedia: http://en.wikipedia.org/wiki/Skype_Technologies.
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Exhibit 1 Skype?s Features
Source: Company information
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Exhibit 2 Skype?s Valuation
Source: Company information
Note: *estimated value when sold to investor group.
Exhibit 3 Skype User Metrics
Note: In millions
Source: Company information
217
325
474
663
52 75
105
145
4.6 5.8 7.3 8.8
0
100
200
300
400
500
600
700
Dec,2007 Dec,2008 Dec,2009 Dec,2010
Registered users
Average monthly connected users Average monthly paying users
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Exhibit 4a Skype?s Balance Sheet
Dec 31, 2008 Dec 31, 2009 Dec 31, 2010 Cash and cash equivalents 260,187 114,077 142,465 Current assets 319,804 202,445 243,387 Property and equipment, net 6,040 13,238 36,523 Goodwill 1,836,562 2,372,779 2,372,779 Intangible assets, net 112,934 788,118 637,688 Other non-current assets 7,195 33,124 27,478 Total assets 2,282,535 3,409,704 3,317,855 Current liabilities 219,893 302,246 353,726 Long term debt — 722,220 686,348 Deferred and other tax liabilities 2,600 97,665 31,091 Total liabilities 222,493 1,172,131 1,071,165 Stockholder?s equity 2,060,042 2,237,573 2,246,690 Total liabilities and stockholder?s equity 2,282,535 3,409,704 3,317,855
Exhibit 4b Skype?s Income Statement
Dec 31, 2008
Jan 1, 2009 to Nov 18, 2009
Nov 19, 2009 to Dec 31, 2009
Dec 31, 2010 Net revenue 551,364 626,458 92,445 859,815 Cost of net revenue 293,201 298,334 45,647 415,702 Gross profit 258,163 328,124 46,798 444,113 Operating expenses: Sales and marketing 83,222 104,279 16,710 131,939 Product development 33,599 38,462 6,565 72,263 General and administrative 48,648 48,688 112,274 104,954 Amortization of acquired intangible assets 69,832 55,453 13,284 114,308 Other — 343,826 — — Total operating expenses 235,301 590,708 148,833 423,464 (Loss) / income from operations 22,862 (262,584) (102,035) 20,649 Realized loss on amended credit agreement — — — (13,513) Interest income and other (expense), net 10,297 (2,549) 5,492 4,817 Interest expense — — (10,387) (68,645) (Loss) / income before income taxes 33,159 (265,133) (106,930) (56,692) Income tax (benefit) / expense (8,447) 3,950 (7,209) (49,787) Net (loss) / income 41,606 (269,083) (99,721) (6,905)
Source: Company information
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Exhibit 5a Microsoft?s Balance Sheet
In million
June, 2008 June, 2009 June, 2010 Cash and cash equivalents 10,339 6,076 5,505 Current assets 43,242 49,280 55,676 Property and equipment, net 6,242 7,535 7,630 Goodwill 12,108 12,503 12,394 Intangible assets, net 1,973 1,759 1,158 Other non-current assets 2,640 1,878 9,255 Total assets 72,793 77,888 86,113
Current liabilities 29,886 27,034 26,147 Long term debt – 3,746 4,939 Long term unearned revenue 1900 1,281 1,178 Other long-term liabilities 4,721 6,269 7,674 Total liabilities 36,507 38,330 39,938 Stockholder’s equity 36,286 39,558 46,175 Total liabilities and stockholder’s equity 72,793 77,888 86,113
Exhibit 5b Microsoft?s Income Statement
June, 2008 June, 2009 June, 2010 Revenue 60,420 58,437 62,484 Operating expenses: Cost of revenue 11,598 12,155 12,395 Sales and marketing 13,260 12,879 13,214 Research and development 8,164 9,010 8,714 General and administrative 5,127 3,700 4,004 Employee severance 0 330 59 Total operating expenses 38,149 38,074 38,386 Operating income 22,271 20,363 24,098 Other income (expenses) 1,543 (542) 915 Income before income taxes 23,814 19,821 25,013 Provision for income taxes 6,133 5,252 6,253 Net (loss) / income 17,681 14,569 18,760
Source: Company information
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Exhibit 6 Microsoft?s Stock Price Evolution in May 2011
Source: Yahoo finance
0.05
0.03
0.01
0.01
0.03
0.05
May 06 May 09 May 10 May 11 May 12 May 13 May 16
MSFT S&P 500 Apple Google
0.06
0.04
0.02
0
0.02
0.04
0.06
May 02
May 04
May 06
May 10
May 12
May 16
May 18
May 20
May 24
May 26
May 31
MSFT S&P 500 Apple Google
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Exhibit 7 Skype and Microsoft: Future Possibilities
Source: Infographic
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Exhibit 8 Skype?s Paid Usage and Ad-Driven Revenue Scenario Analysis Toolbox
Source: Winslow Philip, Dennis Simson, and Sitikantha Panigrahi. ?Skype?s Overlooked Display Ad Potential.? Credit Suisse Analyst Report, 24 May 2011
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Exhibit 9 Average Capital Expenditures, Depreciation and Reinvestment Rate by Industry in 2010 (Selected)
Industry name
Number of Firms
Capital Expenditures ($)
Depreciation ($)
Cap Ex/Deprecn
Net Cap Ex/Sales
Net Cap Ex/ EBIT (1-t)Sales/Capital Advertising 27 955.70 1,861.00 51.35% -2.18% -37.42% 1.31 Computer software/SVCS 246 6,438.50 11,064.00 58.19% -1.82% -10.34% 2.03 Computers/peripherals 100 12,727.90 15,767.40 80.72% -0.64% -6.61% 3.45 Internet 179 3,567.20 5,394.70 66.12% -1.95% -16.47% 2.16 Telecom equipment 103 5,375.40 8,902.30 60.38% -1.57% -19.76% 2.59 Telecom services 85 83,028.40 89,836.90 92.42% -1.23% -7.50% 0.80 Telecom utility 27 33,438.70 45,380.80 73.68% -4.47% -26.87% 0.83
Source: NYU Stern School of Business
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