Microsoft Buying Skype in $8.5B Deal

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Microsoft announced on Tuesday that it has struck a deal to buy Skype for US$8.5 billion in cash. The announcement comes on the heals of rumors that Facebook and Microsoft were courting the online chat and communications company.

Microsoft and SkypeMicrosoft plans to buy Skype

The deal has been approved by the boards of directors for both companies and finally lets eBay offload the rest of Skype. eBay payed some $2.6 billion for Skype back in 2005 raising questions about why an online auction company would want an Internet chat company.

eBay sold off 65 percent of Skype in 2009 to Silver Lake Investment, which just so happens to be the same firm that’s backing Microsoft’s purchase.

Once the deal is complete, Microsoft will have access to new communication tools it can roll into its own products such as the Xbox 360 and Messenger. According to the company, “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.”

Skype CEO will report to Microsoft CEO Steve Ballmer as president of the Microsoft Skype Division.

The deal still needs to jump through the usual regulatory hurdles, but Microsoft expects to finish the purchase process by the end of 2011.

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8 Comments Leave Your Own

Lee Dronick

Great graphic Jeff.

geoduck

Awwww…..damn

It’s like having an old flatulent dog that chews your slippers and messes on the rug. It’s annoying but you’ve had it for years and have grown to sorta’ overlook the problems. Then one day you find out it’s got rabies.

Well, I guess it’s time to pull out the old shotgun and then start looking for another video telephony client.

Suggestions?
(For Mac and Win)

ibuck

I wonder if Apple doesn’t already have iChat improvements up its sleeve. and is just waiting until it’s (Why The %@&# Doesn?t It Do That?) perfect.

Lee Dronick

I wonder if Apple doesn?t already have iChat improvements up its sleeve. and is just waiting until it?s (Why The %@&# Doesn?t It Do That?) perfect.

I was wondering if the North Carolina Data Center would in part have something to do with iChat and or FaceTime. Something that would by comparison make Skype the equivalent of alpenhorns.

jfbiii

It?s like having an old flatulent dog that chews your slippers and messes on the rug. It?s annoying but you?ve had it for years and have grown to sorta? overlook the problems. Then one day you find out it?s got rabies.

LMFAO. So nice.

wab95

I wonder if Apple doesn?t already have iChat improvements up its sleeve. and is just waiting until it?s (Why The %@&# Doesn?t It Do That?) perfect.

The problem is that Skype has now become a de facto standard. People even now talk about ‘Skyping’ each other and not VOIP’ing each other. Depending on how MS choose to play this, Skype could either remain an accessible, platform neutral medium, or MS could use this to shoe-horn consumers into its mobile platform. MS’s history is not very encouraging on the former, and that’s a big global foot to shove into a still shrinking shoe. One would hope that even MS would see that as a bad business move.

It will take some doing to get Facetime or even iChat to the same level of market penetration, which would be helped by MS making Skype inaccessible to non-MS/NOK mobile clients.

b0wz3r

Another formerly great business that Monoposoft will ruin…

They’ll start charging, for everything… monthly fees, access fees, bandwidth usage, licensing fees, you name it, they’ll charge something for it, and users will drop the service like dead flies, and then M$ will be stuck with a dead and useless corpse, and have again wasted billions of dollars.

Don’t these guys have any clue?

Lee Dronick

They?ll start charging, for everything? monthly fees, access fees, bandwidth usage, licensing fees, you name it, they?ll charge something for it, and users will drop the service like dead flies, and then M$ will be stuck with a dead and useless corpse, and have again wasted billions of dollars.

Isn’t their current service free? If so then maybe they will keep that for those want free, and maybe put up bare bone features and adverts. For those who want more features and are willing to pay for the service maybe they will roll out MicroSkype.

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