Microsoft Buys Skype

Microsoft has just announced that it has bought popular voice over IP company Skype, for $8.5 billion.

Skype will now support Xbox, Kinect and Windows Phone, and will be integrated into Live to allow Skype users to chat. It will also connect Skype users with Lync, Outlook, Xbox Live and other communities.

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Microsoft, says the press release, will “continue to invest in and support Skype clients on non-Microsoft platforms”.

“Skype is a phenomenal service that is loved by millions of people around the world,” said Microsoft CEO Steve Ballmer. “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.”

Skype will become a new business division within Microsoft.

“Microsoft and Skype share the vision of bringing software innovation and products to our customers,” said Tony Bates, Skype CEO. “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,” Bates said.

Source: press release.

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39 Comments

  1. NOOOOOOOOOO, That means no intergraion with PS3 XMB then to get round the XGC :(

    Will this have other implications.

    DR-DAVROS

    • Indeed. It’s weird that PSP has it but not PS3….shame.

      • Well, the PS3 has already got a chat functionality.

      • Yeah but aren’t you limited to only PS3 contacts? Using the PSP I think you can contact people using Skype on a different format such as a PC, no?

    • I’m not a fan of this either, for the fact that I use Skype on my computer too – they’ll no doubt change things & cover it with Microsoft branding just make it naff :/
      I started using Skype because Windows Live Messenger was rubbish, they’ll probably do a similar thing to this D:

      • yeah i doubt it’ll be any good at all

    • I don’t necessarily see it effecting PS products, I mean MS have sold Office on Apple products for decades now, when it comes to making money off a lucrative product, MS don’t really seem to care where the money comes from.

      Plus, for some reason, I really like the idea of being able to use chat between the PSP and 360.

  2. *sadface*

    I’ll wait for the first improvement that breaks it :(

    • To quote 1,234,235 people: “I have a baaaaaaad feeling about this”

  3. Massively overpaid for it, but that’s the cost of stopping Sony. Problem is of course that Steam still offers the tantalizing prospect of getting around those patents Microsoft holds with regards to party and video chat. After the negotiations with Google broke down over Chrome Sony surely have to be concentrating on sitting down with Valve and getting something sorted.

  4. Suppose it is quite a good thing. I use Skype on my android phone and it doesn’t include video calls. I’m hoping that the new stream of money, means that Skype bring that feature to android.

    Besides that, I’m not all that bothered about this. As long as the service keeps working well I’m happy.

    • You will have to pay for everything

      • Pay As You Talk, contracts!! M$ !!!!!!!!

  5. Strange valuation
    eBay bought Skype for $2.7bn in 2005ish & sold it to an investment company for $2.9bn around 2009 or 10

    For Microsoft to suddenly fork out $8bn seems rash, I’d suspect their were rival bidders such as Google who need a main stream brand to try & break their slightly geeky gTalk & gVoice products into the mainstream

    Also Microsoft seemed to be doing just fine with Kinect video chat without Skype, but I suppose it helps them extend their reach, but $8bn just for that on something which isn’t proven to have made a profit throughout its entire existence just seems very un-MS-like

    It is however a great fit for their Windows/Office/Xbox/Kinect/WP7 brands, so I’m sure they’ll be able to leverage value somewhere down the line, especially if Skype hold a whole host of Video&VOIP related patents… Look out competitors

    • Could a rival bid have been Sony. I wonder what will happen to MSN and SKYPE will one die.

      • I’m quite happy to see Live Messenger die and Skype to absorb a few of its features. My only use of Live Messenger now is as an alert for emails.

      • As far as I know Google was interested in Skype.

      • Windows Live is such an needlessly ugly program/service. I don’t doubt that it’ll happen to Skype too :/

    • Interesting, I thought it was quite a high price. They are surely mostly paying for the brand name and Skype’s user base – Microsoft or any of the companies mentioned already have or could easily create equally good products to compete with Skype.

  6. NOOOOOOOOOO :(, their goes the chans of having Skype for ps3… wonder if this will effect skype on psp?

  7. They did say that they will still be supporting non-microsoft devices, so I guess it will still remain on Sony and Apple devices.

    • Yeah but i will probably not be on the NGP now.

  8. Now thats an interesting piece of news. I wonder how much MS will interfere with it.

  9. :(

  10. big :-(
    Skype is amazing – please don’t ruin it M$.

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