Microsoft Buys Skype For A Whopping $8.5 Billion
In the largest deal of their 36-year history, software giant Microsoft has just agreed to buy Skype for $8.5 billion dollars.
In a tough battle to keep up with Apple (who has Facetime) and Google (who has Google Voice), this deal is predicted to give Microsoft a much needed boost among it’s competitors. 170 million users log on to Skype each month, which will not only put Microsoft in the running among it’s competitors but also presents a perfect window to push their search engine, Bing, to this new demographic.
While the cards seem to be in Microsoft’s favor, Skype is essentially a free service, with only 8.8 million users (just over 1%) paying to use it’s services. They even lost $7 million dollars last year.
Nevertheless, Microsoft is optimistic about it’s future with the internet phone service and his big plans for their new baby, including providing better communication and video services for their popular XBox consoles.
Skype will become a new division under Microsoft with will be headed by Skype’s CEO, Tony Bates.
“By bringing together the best of Microsoft and Skype, we are empowering people around the world with new technologies that bring them together.”
-Microsoft CEO, Steve Ballmer
Short URL: http://www.josic.com/?p=1695
Posted by Lindsey Shianna
on May 10 2011. Filed under Business.
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