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  • Microsoft Confirms Purchase of Skype for $8.5 Billion


    Microsoft is serious - to the tune of $8.5 billion - about better competing against the likes of Apple and Sony when it comes to everything from mobile phones to video game consoles. On Tuesday, Microsoft announced plans to purchase VoIP service Skype in what will be the biggest deal Microsoft has ever done.

    The reaction on Wall Street, however, was anything but overwhelmingly positive in response to the news. Microsoft declined 1.9% premarket after unveiling the purchase plans, stating that Skype will benefit numerous Microsoft products and services like Xbox, Kinect, and Windows Phone, perhaps better competing against Apple's iPhone and it's hugely popular FaceTime video chat functionality.

    "Skype is a phenomenal service that is loved by millions of people around the world, Microsoft Chief Executive Steve Ballmer stated after the acquisition plan was formally unveiled. "Together we will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world."

    According to the Wall Street Journal, Skype will become a new business division within Microsoft. Consequently, Skype CEO Tony Bates will become president of the division and report directly to the big guy himself - Mr. Ballmer. 'Microsoft and Skype share the vision of bringing software innovation and products to our customers," Bates said. "Together, we will be able to accelerate Skype's plans to extend our global community and introduce new ways for everyone to communicate and collaborate."

    Skype, which was founded in 2003, was acquired by eBay for a relatively paltry $2.6 billion in comparison some six years ago. In 2009, an investment group led by Silver Lake gobbled up Skype, which now appears to have found more permanent home in Microsoft.

    Source: Wall Street Journal
    This article was originally published in forum thread: Microsoft Confirms Purchase of Skype for $8.5 Billion started by Michael Essany View original post
    Comments 24 Comments
    1. etreby's Avatar
      etreby -
      Its really amazing how people sit back, relax infront of their monitors and decide to give a professional business opinion of why microsoft's purchase of skype worth 8.5 billion USD is not a good idea.
      For God's sake people, do you think microsoft will let go of this amount of money based on a hunch?
      There must have been hordes of analysts that have worked on this deal for at least a few months before deciding to buy skype!

      Only time will tell if microsoft will regret or enjoy their decision, but one thing for sure is that they must have done their homework before coming to this purchase conclusion.

      Besides, from what I have read, Ballmer is a very shrude business man. Not some oblivious idiot!
    1. kakasaka's Avatar
      kakasaka -
      Quote Originally Posted by teej1410 View Post
      Has Microsoft actually MADE anything or made an original product?
      Seem's like that's a no
      why make products when you have the money to buy out competition?
    1. jwil736's Avatar
      jwil736 -
      As the article states, Microsoft has plans of integrating Skype with their products. it is an INVESTMENT for their computers, phones, and gaming platforms.
      I am sure, like most things Microsoft is involved in, will eventually pay off. They will be taking current Skype users and be adding so many more from their current products.
      This is going to make them more competitive in the market and will make waves in the likes of Apple. In end result, will be better for iOS and MacBook users.
    1. ICydiaify's Avatar
      ICydiaify -
      I wander how bad skypes gonna be now there is gonna be loads of hackers because they hate Microsoft