Brand Wars: Microsoft's OTT bid for Skype Good or Bad?

Reuters is reporting that Microsoft is launching an 8.5 Billion USD ($) bid for Skype in an effort to....well, no one really knows.  While past acquisitions by the big 'M' have always been strokes of master strategy (i.e. Hotmail, etc) it has arguably been a while since the company seemed to do anything of consequence other than chase existing business models (cue 'Bing' and Windows Mobile 7)

  

So what are we to make of Microsoft's ridiculous bid for Skype: a company that was only valued at 1 Billion USD 2 weeks ago?  Answer: not sure really.  Some might argue that Microsoft is on the verge of a new era, but then some have been arguing that for years (including me) and quite frankly, the layer of dust is so thick on Microsoft's momentum these days that I highly doubt this new acquisition is anything other than an act of desperation.  Microsoft's biggest issue is what used to be its biggest strength: branding.  The name just doesn't excite or hold water anymore apart from what is generally considered a begrudged necessity for anyone who wants a PC and a productivity suite for business.  Over the years, Gates and co worked the plan to get Microsoft cash cows on the 'have to have it' category.   On paper, that sounds great - but in reality, it creates resentment and possibly even anger amongst your customers; especially if they feel towed along unwarranted product releases.

 Skype, on the other hand, is a 'happy' brand that people know and love.  I'm sure there are thousands who say that Microsoft is simply harvesting the 'superior' tech from Skype (and to be honest, a skype audio codec on Xbox LIve is NOT a bad thing) but the fact is, Microsoft doesn't really need them for that because they have a decent-enough video and audio codec for their own platform.  So what is it then?

  

My thoughts (and worry) is that Microsoft is looking to harvest Skype's popularity instead.  In a manner of speaking, you could say that 'Bluto' just paid off 'Popeye' to get to 'Olive.'  If that plan sounds a bit daft and transparent, then welcome to the view of the majority.