Is it a Suicide note from Microsoft or something else..

Microsoft's recent acquisition of Skype for $8.5 billion..

Most people are saying that it is overpriced and will meet same history as eBay... hmmm.. I agree.. I don't think MS will gain anything in terms of user base.. they already have very strong user base and on hotmail and MSN messenger, which they didn't leveraged properly.. but it is still a potent force and people still use it a lot for IM needs. I still can't understand why they have to pay $8.5 billion for this kind of service.. Even if there current MSN messenger service doesn't have IP phone feature.. they can develop it and get it ready may be for few hundred million dollars considering Microsoft's size. To make it popular.. make it very easy to use.. may be embed it in browser (oops.. I meant Internet Explorer).. and then subsidize calls to US and many other countries.. may be few hundred million dollars a month.. run it for couple of years at the most and then make it paid service.. I am sure they will still spend less than one fourth of what they are paying right now upfront.. and not even sure if it will make sense to them.. I think it is somewhat like AOL situation, where they simply didn't understood on what to do with the generated cash..

Now coming back on upside..

What could be upside.. I think biggest upside could be in Targeted Advertising side if they are able to execute properly..  If they are able to link Bing with Skype on audio/video channel and start scanning conversations for keywords and based on user profile start sending good meaningful targeted advertisements.. 
This is one thing which should be able to generate immediate revenue stream for them and help them compete Google.. Once Skype becomes even more pervasive in all MS apps like IE, Office or even xbox there upside is pretty good. however, they are going to face tough competition from Google in this area who is leading charge with Android where MS failed miserably..

So, time will tell if it was intelligent or desperate decision by MS.. As of now it looks little expensive.. but then couple of billion dollars are just change for MS and last priority for MS at this time.. they have much bigger things to worry about..