Microsoft's Skype deal cheats taxman of £2.6bn

Many are puzzled as to why Microsoft would pay that kind of wonga for Skype. Skype makes massive revenues however runs at a loss, so we presumed Microsoft was buying the VoIP (Voice over Internet Protocol) company for its 170 million clients. Financial wonk Larry Elkin has a different theory.

Giant pile of cash from selling Windows

Elkin reckons Microsoft is sitting on a giant pile of cash from selling Windows and doing business in overseas markets, and it needs to do something with that stockpile of spondooliks. Publically traded companies have to redistribute leftover loot to shareholders, and bringing those surplus simoleons into the US would see a vast chunk carved off by the taxman -- less than 65 per cent and potentially as little as 45 per cent would reach shareholders.

Apple is as well sitting on a vast cash stash of £40bn, and we're sure the Cupertino-based company has its own crack tax hacks working round the clock.

The innovation side

On the innovation side, Microsoft has already said you'll be able to make Skype calls on Kinect, and Skype innovation will probably be built into Windows 8.