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Microsoft Buys Skype For $8.5 Billion

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EATS

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Recent talk had both Facebook and Google in a bidding war for Skype. Earlier today, news was floating around that Microsoft might be close to cracking a deal with the Luxembourg-based VoIP experts. Now, Microsoft has officially announced in a press release that it will be acquiring Skype - a deal that is valued at roughly $8.5bn dollars, making it Microsoft’s biggest ever buyout. In the words of Steve Ballmer, the companies will work together to create a "future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world.”

The press release further details the roles Skype will play: "Skype will support Microsoft devices like Xbox and Kinect, Windows Phone and a wide array of Windows devices, and Microsoft will connect Skype users with Lync, Outlook, Xbox Live and other communities. Microsoft will continue to invest in and support Skype clients on non-Microsoft platforms."

As for just how the merger will work, Skype will become a new business division within Microsoft, with current Skype CEO, Tony Bates, taking the role of the President of the Microsoft Skype division. Skype has been around in the acquisitions world for a while, and was recently written off by eBay in 2009, after it failed to effectively integrate it into its ecosystems ever since it acquired the company in 2005. Perhaps the innovative and successful VoIP service is really meant to stand alone? Microsoft has a much better chance of pulling something off, with the WP7-Xbox-Windows ecosystem ripe for VoIP even on the consumer side, aside from the possibilities on the enterprise side.

Stay tuned for more details about the deal as they're released, and check out the press release for more details.

Source.

Edited by dipanlahiri

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well, as they say, all good things finally come to an end

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^

Haa haa haa...

Was hoping Google would get their hands on to skype...guess they will now have to concentrate on Google voice ! :)

Edited by gaurangbhartia

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M$ gulped skype :'(

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Lets hope google voice come soon to india as well to eat up skype

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Wasn't expecting Microsoft to get Skype but then I think it's about competition. Microsoft wants to feel relevant and aggressive in the Web 2.0 world, dominated by social networks and ever-changing tech equations.

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MS missed Palm big time and now skype.. i dont know what the hell it gonna do with it? i mean 8 billion and dont know how it will fit..

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Overpaid and a risky move. Skype made a net loss of $7 million last year on revenue of $ 860 million, even as its user base grew nearly 40 percent to 145 million.

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How Skype earns when most of the users use it for free calling

May be MS has a secret plan or better forecast for Skype

Sent from my SCH-I500 using Tapatalk

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BOught FoR 8 BiLLioN

they could have downloaded it for free - LOL

microsoft-skype.jpg

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Parin bhai, MS will be probably curtain free to use VOIP or turn the free service to some kind of premium offering to businesses and those looking for better quality.

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^^^ MS is playing big time they have plans to link their devices and services, like Outlook using Skype

WInMO with Skype as their VoiP, video calls all in one and make their space in cloud....

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They have plans to integrate Skype with XBOX Live, Windows Live, Outlook, Windows phone and Zune.

Windows phone, Live and Outlook makes sense but XBOX is not clear.

But knowing MS under Ballmer, it might be a royal screwup and waste of money. Gates had the vision even though people vilify him.

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