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Microsft acquires Skype for $8.5 billion. EBay bought Skype in 2005 for about $3.1 billion, then took a charge of $1.4 billion for the acquisition in 2007, after failing to make a fit for it in EBay. Only 18 months ago EBay sold a 70% stake in Skype to a group of investors led by private equity firm Silver Lake Partners. That deal valued Skype at $2.75 billion. This suggests that Microsoft's Steve Ballmer is paying a steep price for Skype. This is especially true because Skype has failed to bring in many paying customers. Losses were $7 million last year. Skype has 170 million users but most of the calls are made free between computers. Increasingly its use is as an app on smartphones so that users do not have to pay higher fees to wireless carriers for calls. How Microsoft integrates Skype into its own products and how it makes the acquisition work is a challenge for Microsoft. Because of Microsoft's purchase, EBay will end up making $1.4 billion profit on Skype. Skype is based in Luxembourg, and Microsoft will use cash it holds overseas for the acquisition, money that could not be repatriated to the U.S. without paying taxes of more than 30%....

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The U.S. Labor Department reports that 4.4 million unemployed workers in the U.S. were out of work for more than one year. For the U.S. this is 30% of all unemployed. In some of the largest states about one in three unemployed workers have been out of work for more than one year. For New Jersey which has a 9.4% unemployment rate compared to 9.6% nationally, 37.1% were out of work for more than one year. Older Americans, the highly educated workers, are more likely to have longer stretches of unemployment. This is the situation in New Jersey and Florida where there is a larger population of older workers.

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Ratan Tata welcomes Air India- formerly founded as Tata Airlines in 1932 by an accomplished pilot JRD Tata who flew the maiden postal flight in South Asia from Karachi to Bombay in 1932- back to Tata Group. JRD Tata assumed the position as head of Tata Sons in 1938. Nehru nationalized Air India in 1953 after years of bureaucratic interference in the management of the airline. Ratan Tata was selected by JRD Tata to run the Tata Group in 1990 and was present during the early formative years of the airline. The decision to take 100% ownership of Air India in 2021 appears to be a good one considering the difficulties JRD Tata had- and which Ratan Tata is familiar with- from interference by the government in the management of the airline in the early period after independence in 1947. This gives Tata Group a clean start to build a new airline. By taking responsibility for three fourths of the debt of Air India with Tata Group taking on the other one fourth, the government gives the new airline a good start. Air India was losing 3 million dollars a day according to a report in DW.com. This transfer also frees up this huge investment for use in other areas of the economy such as infrastructure building, healthcare, education, logistics for exports. ...

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The election strategy of Obama campaign manager Jim Messina to spend heavily early on in the campaign- even before Romney would get to the convention- to portray Romney as a private equity executive out of touch with the needs of working class Americans. Romney's record at Bain Capital was under relentless attack in the late summer and Romney did little to defend his record till late in the campaign. The other area especially in the midwestern states was the auto industry bailout for which the Obama campaign put out a flurry of ads saying Romney was willing to let Detroit go bankrupt. Experts say this proved to be the decisive factor, as Romney could never overcome the disadvantage in this portrayal to voters of someone who did not care enough for people like them. To do this the Obama campaign had outdone the Romney campaign in fundraising, being way ahead of Romney in campaign funding by that time.

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Christina Romer, former chairwoman of Obama's Council of Economic Advisors, puts forward a strategy to get deficit reduction and avoid the "fiscal cliff" of automatic cuts based on the Simpson-Bowles commission recommendations to reduce tax expenditures, deductions and loopholes. She says let Republicans in Congress determine where spending on infrastructure improvements should go as the needs are so diverse and widespread and this will get constructive input to improve the focus on vital areas. Earlier efforts on road building for stimuls spending were criticized for generating temporary work but not creating long term benefits and synergies.

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As Britain goes to general elections in May 2015, one of the issues in the election will be new referendum on membership in the European Union promised by prime minister David Cameron. Cameron has said he will negotiate a better deal for Britain in the EU and hold a referendum by 2017. The last referendum was in 1975, in which two thirds of voters supported membership in the EU. British disapproval of the EU has increased with immigration from newer EU members since the 2008 financial crisis, and increasing unemployment. Some recent polls show 42% voting to stay in the EU, and 39% opting out, suggesting a close vote. Negotiations for better terms mean treaty change, which would be opposed by France. Germany's Merkel also opposes changes on the immigration rules that do not allow free movement of labor. Other EU leaders see Cameron's moves on the EU being an effort to counter the UK Independence Party's push for EU exit, as the UKIP could draw Conservative right wing voters in the 2015 general election. ...

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Stefanos Tsitsipas plays Novak Djokovic in the Australian Open final.

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Most countries in Europe and North America are observing a locked down Easter. In France 160,000 police officers and gendarmes are on duty to make sure people respect the lockdown. Fear that people will gather in parks and transmit the virus leads to officials in Germany, France and Britain to keep tight restrictions. The virus transmission has not abated in these countries. Religious services in Germany will be held online. Police in London patrolled parks and green spaces to prevent people going outside on sunny Spring days.