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Forums - Microsoft Discussion - Microsoft cuts another 7,800 jobs, takes $7.6 billion "impairment charge"

SWORDF1SH said:
NobleTeam360 said:
MoHasanie said:

$8 billion for a free video calling service doesn't seem like a very good business decision to me. 


Key words

In all seriousness, how do they make money on Skype? I know you can add credit to call/text mobiles but does anybody use that to justify the $8B purchase?


Why don't you go call MS, maybe they'll provide you the answer you're looking for.



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Dr.Vita said:

"Accordingly, the company concluded that an impairment adjustment of its Phone Hardware segment assets and goodwill of approximately $7.6 billion is required."

"does not mean that Microsoft will lose $7.6 (b)illion from its balance sheet, a spokesman said."

The second quote there is completely wrong btw. An impairment charge means you are writing off goodwill. Being that goodwill is a balance sheet account, this will most definitely reduce Microsoft's balance sheet by $7.6 billion.



Money can't buy happiness. Just video games, which make me happy.

Minecraft is a waste not even a year into the investment?



DerNebel said:
Will the impairment charge be reflected in their results for the Apr-Jun quarter or in the next one?

I'm guessing it will be in the Apr-Jun, and they are announcing it now to reduce sticker shock when they release earnings and people see a big fat $7.6 billion impairment write off.



Money can't buy happiness. Just video games, which make me happy.

TheSting said:
Minecraft is a waste not even a year into the investment?

It's Microsoft, so yes. xD



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SWORDF1SH said:

In all seriousness, how do they make money on Skype? I know you can add credit to call/text mobiles but does anybody use that to justify the $8B purchase?

-Advertisements on the home page

-People purchasing credits for calling/texting

-Skype for business starts at $2/user/month. To be completely honest, I'm pretty sure where I work has the $5.50/user/month one based on the features we have available. It adds up...especially when my employer alone would be paying for about 7-8k users.



Money can't buy happiness. Just video games, which make me happy.

NobleTeam360 said:
SWORDF1SH said:

In all seriousness, how do they make money on Skype? I know you can add credit to call/text mobiles but does anybody use that to justify the $8B purchase?


Why don't you go call MS, maybe they'll provide you the answer you're looking for.

Very informative, thank you!

Anyway endimion expained a little and wiki did the rest.



Baalzamon said:
SWORDF1SH said:

In all seriousness, how do they make money on Skype? I know you can add credit to call/text mobiles but does anybody use that to justify the $8B purchase?

-Advertisements on the home page

-People purchasing credits for calling/texting

-Skype for business starts at $2/user/month. To be completely honest, I'm pretty sure where I work has the $5.50/user/month one based on the features we have available. It adds up...especially when my employer alone would be paying for about 7-8k users.

Yeah read a little, I do see ads but there aren't many but when you have over 100 million people using it a month, that will pull in some cash. Plus you have to consider that purchasing skype they also purchased all the tech to go with it. Valuable tech that can be used in many ways.

And it's crazy to see a company paying $5 a month per use for 8k users. What purpose does it have to be worth it?



SWORDF1SH said:

Yeah read a little, I do see ads but there aren't many but when you have over 100 million people using it a month, that will pull in some cash. Plus you have to consider that purchasing skype they also purchased all the tech to go with it. Valuable tech that can be used in many ways.

And it's crazy to see a company paying $5 a month per use for 8k users. What purpose does it have to be worth it?

I don't necessarily think it is worth that...but there are a couple pretty cool things:
-Integration with Outlook
-Conference calls up to 250 people (I've never had more than a few)
-Remote control/view another user's desktop (I've actually used this)



Money can't buy happiness. Just video games, which make me happy.

SWORDF1SH said:
NobleTeam360 said:


Why don't you go call MS, maybe they'll provide you the answer you're looking for.

Very informative, thank you!

Anyway endimion expained a little and wiki did the rest.

Wow, you found the answer by doing a little work!?!?! Good job, gold star for you!