Microsoft's Skype Move Right Out of 'Dumb Deal Playbook'

Back in January I wrote a piece headlined: "Why Microsoft Should Be Broken Up."

I quoted Jim Schrager, a clinical professor of entrepreneurship and strategy at the University of Chicago.

He has spent a tremendous amount of time studying Microsoft , and his take then: It’s an unfocused company that, if it really wanted to wow investors, would sell off everything but Office and Windows—its true goldmines.

What does Schrager think of today’s announcement re purchasing Skype?

“It's a classic move by Microsoft, trying to come late to an area, with no ideas and nothing but a bag of money to squander,” he says. “Dumb money always loses. Why is Microsoft great? Because monopoly is wonderful. Therefore, anything they do to hold and expand their monopoly is a winner, everything else is a loser."

“Being an (often slow) follower in games, phones, music and so on goes nowhere. These guys aren't strategically smart. But they have lots of money and are determined to waste it. Ask a simple question: How is this deal different from all the other bad deals they have done?"

“Answer: It is right out of the dumb deal playbook!”

Good thing he didn’t tell us what he really thinks.

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