Microsoft blocked Skype from seeking other bidders
updated 09:20 pm EDT, Tue May 10, 2011
Startup sought at least $7 billion
Microsoft reportedly blocked Skype from seeking competitive bids during the negotiations leading up to the recent acquisition deal. Unnamed sources with knowledge of the matter told Bloomberg that the software giant refused to negotiate without a no-shop clause, preventing Skype from soliciting other offers while the companies finalized the $8.5 billion purchase price.
Skype is said to have not received any "serious bidders" willing to pay at least $7 billion, the minimum valuation that the VoIP startup was expecting from an initial public offering, according to Marc Andreessen, a co-founder of venture capital firm Andreessen Horowitz.
Recent reports suggest Google also expressed interest in acquiring Skype, but the search company was allegedly unwilling to pay more than $4 billion. Microsoft CEO Steve Ballmer is said to have sealed the deal at $8.5 billion just one month after first expressing interest to Skype's owners.
The buyout is expected to bring Skype's VoIP technology to Windows Phone, Xbox, desktop software, and other products.
