Microsoft to acquire Skype for $8.5 billion

Mon, May 9, 2011


By Josh Rosenthall:

What started out as an odd little rumor is now being confirmed by Kara Swisher. Yep, folks. Microsoft is, in fact, purchasing Skype for a whopping $8.5 billion.

The deal is reportedly done, the ink has dried, and an official announcement will be forthcoming on Tuesday morning.

Skype of course is a service which helps connect users around the world via Internet chat and video. The company was founded in 2003 by Niklas Zennstrom and Janus Friis who, interestingly enough, had previously created Kazaa, a now defunct file sharing service.

The WSJ reports:

At a value close to $8 billion, the Skype deal would rank at or near the top of the biggest acquisitions in the 36-year history of Microsoft, a company that traditionally has shied away from large deals.

So what in the world will Microsoft plan to do with Skype?

Some speculate that Skype might be integrated into Microsoft Office in an effort to solidify instant message and voice communications. Or maybe, the service will be integrated into Microsoft’s latest Windows Mobile OS. Of course, Microsoft may also try to integrate Skype technology with its popular Kinect gaming system and Xbox Live. The possibilities aren’t endless, and to be honest, all appear to be quite confusing.

All we know is that with a price tag in the billions, Microsoft better have something incredible up its sleeve to justify such an exorbitant purchase price.

Rene Ritchie has a tweet on the acquisition that we feel fits: “Everyone jump on Skype” is about to become “Everyone jump on Microsoft P2P VoIP client for Windows Live Communications 7 Home/Pro/Ult” :-/

via All Things D



1 Comments For This Post

  1. Powernav Says:

    I may be pessimistic, but how long, under Microsoft’s hands, will it be before Mac support withers away?

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