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Summary:

Last week, the Federal Trade Commission (FTC) gave the green light to Microsoft’s $8.5 billion acquisition of Skype, the Internet telephony company. Now there are reports that many key senior executives have left or have been asked to leave the company.

microsoft skype

Last week, the Federal Trade Commission (FTC) gave the green light to Microsoft’s $8.5 billion acquisition of Skype, the Internet telephony company. Skype Journal reports that the FTC go ahead comes at a time when many key senior executives have left or have been asked to leave the company.

Skype senior staff David GurléChristopher DeanRuss ShawDon AlbertDoug Bewsher, and Anne Gillespie are leaving Skype or have left. (Skype Journal)

Bloomberg News reports that Ramu Sunkara and Allyson Campa who joined the company as part of the Qik acquisition have been let go. Bloomberg also says that senior executives have been “cut” because it is “a move that reduces the value of their payout.”

If that is indeed the case, this is a pretty short sighted strategy and it is only going to make integration of Skype into Microsoft more difficult. It seems that this is a pennywise, pound foolish kind of a move, that in the end is going to erode the value of the Skype franchise.

If Skype hits an air pocket, a lot of companies are waiting to pick up the slack. Nimbuzz, for example, already has 50 million users. Google has been becoming bolder with its GoogleVoice offering, even though it is still very US centric.

  1. Saw this earlier and thought – “What a shitty thing to do”, “What a bunch of jerks the investment partners are”

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  2. Interesting. David Gurle is ex-Microsoft VoIP so I would have thought he would be a natural person to help with the integration… unless he has enemies within still.

    Tony Bates is not known as a likable leader. Not surprised to see that he’s repelling talent when it’s in short supply and people have choices.

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  3. Never underestimate the ability of a big company to acquire a great upstart and start messing with them. Microsoft takes the cake in this respect. Feel sorry for Ramu.

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    1. From what I’ve read so far, it’s not Microsoft, it’s the current investment group weeding these people out so the investment group gets more money – greed to the core.

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  4. cuz Microsoft seems to have a knack for messing up everything they touch these days…. so sad, I loved Skype RIP.

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  5. cuz Microsoft seems to have a knack for messing up everything they touch these days…. so sad, I loved Skype RIP.

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    1. Di you hear why Microsoft wants to acquire Dyson vacuums? So they can make a product that DOESN’T suck!

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    2. Hahaha!!! Good one!!!

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  6. Walter Miller Monday, June 20, 2011

    My first opinion when I heard that Microsoft intended there goes the creativity. I believe that in future development efforts regarding Skype to run on any other platform than Microsofts such as Andriod, Apples O/S, and Linux those areas will be severely curtailed if not eliminated. As far as Skype cutting senior executives I say why not most of them will be eventually eliminated by Microsoft anyway. As a major stakeholder in the company I would eliminate all unnecessary costs to maximize profits. If one noticed they were also giving a great deal (low yearly price) to those who use Skype having phone numbers. Like any major business maximize your profits in the short term.

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  7. Not surprised. Skype is terrible software and if Microsoft wants to make a run of it, they need new people.

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  8. I hate Microsoft. Now I hate Skype because it’s from Microsoft.

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  9. You really don’t have any idea how M&A works, do you?

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  10. Makes sense to me. Its not like the top-level execs actually know any details about the technology. Skype needs new leadership, why not save all the excess payroll too. Most senior execs are just a dime-a-dozen commodity anyway.

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  11. thanks for the article, it reminds me that i have to disable my skype account now.
    (my MS hotmail having been hacked, and absolutely no MS support exists for that, it would be terrible if my skype account were hacked too.)

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  15. Why am I not surprised? Coincidentally, I’ve never faced so many Skype problems as I am facing now. Microsoft, I want my old and efficient Skype back!!!

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  16. Truly short sighted, I am not sure if I am going to keep using skype in future.

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