Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, May 13, 2011

Article Excerpt

MICROSOFT CORP., $25.03, Nasdaq symbol MSFT, is buying privately held Skype Global. Luxembourg-based Skype makes software that lets computer users make free phone calls over the Internet. Skype users can also make calls to regular or mobile phones for a fee. As well, Skype offers other services, including video conferencing and instant messaging. Skype has 663 million registered users worldwide. Microsoft is paying $8.5 billion for Skype. That’s the biggest acquisition in Microsoft’s 36-year history. Still, it holds cash and investments of $50.2 billion, or $5.95 a share, so it can easily afford this purchase. The company aims to close the deal by the end of 2011. Microsoft feels that Skype’s expertise will enhance its Xbox Live service, which lets users of its Xbox video-game consoles communicate with each other over the Internet. Skype could also improve Microsoft’s communications software, including its email and instant-messaging programs. The stock fell 3% on the news. That’s because Skype is losing money, and few of its…