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.

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.

39 Comments

  1. “continue to support non-microsoft products” …. does that mean “current”…eg: no Skype for NGP?

  2. I suppose when you have more money than sense this is what you do, throw it around in abundance to blockade the compition. That’s the only reason, MS don’t need Skype as they already have Messenger that provides the exact same service. Surely even through the ‘we will still support it on other non MS platforms’ will not include Sony. Like others have said, now is the time Sony should be talking to Steam.

  3. what a very weird move…

    Microsoft already have two separate VoIP systems – MSN and Lync (and Xbox 360’s Live, which I think is a separate ecosystem again). And those systems exist because Microsoft’s internal structuring – namely the Office division and the Online Services division – don’t seem to get along too well with each other. Will this new acquisition be allowed to invade the traditionally fortress-like specs of Office?

    It will be interesting to see where they slot Skype into their structure, it fits most naturally with Online Services but the integration is something that Office, Windows, etc. could really do with in their next iterations and Lync just isn’t well known enough to be popular.

    It’s also a big risk because Skype has never been successfully monetised and any aggressive attempt to do so will make customers flock to whatever hip new start up offers the same service next year (or, if google would hire a design and marketing team worth a damn, GTalk). Then there are the implications for Microsoft’s partners. This will piss off the people who supply a platform for smartphones (the operators who charge for minutes) and therefore Nokia, who MS have just entered a big deal with. It would seem that it puts MS in the middle of a fight that they would have been wise to avoid – between phone operators (even landline ones like BT and AT&T) and online services, ISPs and smartphone manufacturers.

    Seems like a hugely inflated price to basically buy a hot, public facing name.

    • you don’t get it. This is part of Microsoft’s plan for world domination, they’re going to enslave us all! The M$ empire is growing!

  4. There only few reasons why Skype is worth so much.

    1) Patents.
    2) Microsoft is running scared of losing more ground to Google.
    3) Microsoft is running scared of losing more ground to Facebook.
    4) People are leaving MSN/Windows Messanger/Live (what ever it called this week) in large numbers.
    5) XBox has not been good at outside own market.
    6) Microsoft is losing mobile market to Android and Apple.

  5. Aren’t they monopolising the voip area now with this aquisition?

  6. Never used it, but that seems massively overpriced for something thats not really used that much surely?

  7. Great news for me. Windows Mobile might get a proper Skype client now. Bad news for RIM though, Blackberry could have done with Skype.

  8. There goes any chance of Skype being intergrated into PSN as voice chat can be a pain in the backside sometimes.I really hope they don’t charge for the calls to other users.This could mean that any issues with windows that is cause by Skype may be sorted out.MS please let it remain free.

  9. *Uninstalls Skype from iMac*

  10. First Paypal now skype?
    Talk about kicking someone while they’re down! Maybe MS had a meeting early April and it went something like this…

    “Hey. This Sony PS3/PSN is doing rather well”

    “Yes it is. We need a plan. Quick. Any ideas?”

    (They all pause and look at each other for a few seconds)

    “Well we could sabotage their CC details and make it look like someone else”

    “Brilliant! And then when everybody loses trust in Sony we will strike a deal with Paypal.”

    “Excellent! Excellent! Any more ideas?”

    “Sir we could also buy skype cos we all know XGC is the most wanted feature on PSN. And that NGP is getting some good press. That will slow them down a bit”

    “Fantastic! Well done everybody. We need to get started straight away. Money is not an issue”

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