Tuesday, May 10th 2011

Microsoft to Acquire Skype for Over $8 billion

In what is turning out to be the mother of all tech acquisitions, Microsoft is working towards acquiring IP telephony giant Skype Technologies for nearly US $8 billion, the deal could be announced later today, according to the Wall Street Journal. The Skype acquisition will give Microsoft increased traction in the consumer market, as part of the company's efforts to provide more web-based convergence services. The deal could be the most significant development after Bing, a polished successor of MSN Search.

Skype is the company that propagated web-based telephony, which threatened to make conventional telephony obsolete. Founded in 2003, the company has 663 million registered users, including 8.8 million with paid accounts. In 2005, it was sold to Ebay for $2.6 billion, after which Ebay sold 70% of its shares to private investors by 2009. Microsoft is in the foray to acquire the company and its debt in a deal that can see up to $8.5 billion changing hands.Source: Wall Street Journal
Add your own comment

39 Comments on Microsoft to Acquire Skype for Over $8 billion

#1
OneCool
Oh DAMN!

You know MS is going to screw shit all up :rolleyes:
Posted on Reply
#2
timta2
I just don't understand, Microsoft with all of it's money, talent, and innovation couldn't create a competitor for less? I remember using Skype in it's infancy and thinking it was going to be big. I'm sure people at Microsoft did too. It just doesn't make a whole lot of sense to me, but then again I'm not rich enough to burn money.
Posted on Reply
#3
Frick
Fishfaced Nincompoop
timta2 said:
I just don't understand, Microsoft with all of it's money, talent, and innovation couldn't create a competitor for less? I remember using Skype in it's infancy and thinking it was going to be big. I'm sure people at Microsoft did too. It just doesn't make a whole lot of sense to me, but then again I'm not rich enough to burn money.
They have MSN and that corporate thing and they're not as good at phones as Skype is. They could probably do their own program as you say, but it's easier to just buy it. Also they're blocking out Google a bit which probably is a win.
Posted on Reply
#4
turtile
timta2 said:
I just don't understand, Microsoft with all of it's money, talent, and innovation couldn't create a competitor for less? I remember using Skype in it's infancy and thinking it was going to be big. I'm sure people at Microsoft did too. It just doesn't make a whole lot of sense to me, but then again I'm not rich enough to burn money.
They can make a better system but they can't make millions of people use it over night.
Posted on Reply
#5
Thefumigator
turtile said:
They can make a better system but they can't make millions of people use it over night.
Exactly, the real reason for the acquisition is for its memberships, and not for the software itself. Compared to a whole operative system, a voip software should be a piece of cake.
Posted on Reply
#6
hellrazor
How much do you want to bet that they'll run it into the ground?

Do keep in mind all the other stuff MS has bought that they ran into the ground.
Posted on Reply
#7
Imsochobo
Frick said:
I don't really understand why people hate on MS so much, so I think this is interesting.
cause I don't know how an OS for simple tasks can swollow an I7 with 16gb ram....
cause I don't know why the OS takes 20 gb when a os on 4 just does the same, and works better while doing it.


This is just a step towards making wph7 sell, I doubt it will, cause its just horrible to use and people doesnt even want a free one... my job gives you a phone, people buy a phone instead with android, well, that just shows how wrong they went.
Posted on Reply
#8
Frick
Fishfaced Nincompoop
Imsochobo said:
cause I don't know how an OS for simple tasks can swollow an I7 with 16gb ram....
cause I don't know why the OS takes 20 gb when a os on 4 just does the same, and works better while doing it.
I don't even understand what you mean.
Posted on Reply
#9
Nesters
Imsochobo said:
This is just a step towards making wph7 sell
Lol, no. It would push carriers away from WP7.
Posted on Reply
#10
Easy Rhino
Linux Advocate
microsoft bought skype for all of the patents. much easier in general to buy out a company and aquire its patents (which are incredibly lucrative for skype right now) then put all the money into your own R&D. what's more, skype is a household name now and microsoft has been ramping up content delivery. you are an idiot if you think all microsoft does is make operating systems...
Posted on Reply
#11
[H]@RD5TUFF
DannibusX said:
Microsoft wouldn't invest 8.5 billion in Skype unless they were acquiring the patents that come with the technology.

I don't think you'll see much happen to Skype after the acquisition other than Microsoft integrating the tech into their existing services, and possibly integrating it into Windows itself.
Bingo! I think you will also see it integrated into XBOX live, I know a lot of people will see some added value of using their console as communications device, further reducing the need for a land line.
Posted on Reply
#12
Frick
Fishfaced Nincompoop
[H]@RD5TUFF said:
Bingo! I think you will also see it integrated into XBOX live, I know a lot of people will see some added value of using their console as communications device, further reducing the need for a land line.
And if they integrate that stuff into Kinect it would be pretty darn cool.
Posted on Reply
#13
[H]@RD5TUFF
Frick said:
And if they integrate that stuff into Kinect it would be pretty darn cool.
Yeah I think Kinetic video chat isn't an unreal expectation perhaps as soon as a year down the road.
Posted on Reply
#14
bostonbuddy
def will be used w/ kinect for video chat.
Posted on Reply
Add your own comment