Microsoft acquires Skype for $8.5 billion


Voice-over-IP service Skype has been bought by Microsoft for the sum of $8.5 billion dollars, an acquisition that will surely shake-up the mobile video chat industry in one way or another. A major factor in the decision was Microsoft’s mobile segment, with plans to directly integrate Skype services into Windows Phone 7. MS also makes mention of Xbox and Kinect integration of Skype as driving force behind the buyout.

The deal could have some resounding effects for other smartphone platforms. Google was purportedly in talks with Skype for some sort of joint venture concerning video chat on the Android platform. Microsoft’s acquisition of Skype will no doubt hamper those discussions. Facebook was also said to be interested in purchasing Skype, but that deal has fallen through as well with MS emerging the top bidder.

[via Engadget]

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  1. This will probably force Google and Apple to stop playing nice with the carriers and do the same with Google Talk/Voice and Facetime, that is full integration with contacts and voip+video over both 3g/4g and wifi. There is no way of stopping VOIP and the carriers will just have to find other ways of making money.

    1. So long as everybody is capped at an extremely generous 200MB per month, the carries should have no issue, that’s over 10 million emails!

      1. These caps won’t last. Once upon a time, everyone had dial up. Then came cable modem and DSL. Then came caps of 1 GB per day. Then came restrictions on not “tethering” multiple computers on a single data connection by using a router. Like this past silliness, this too will pass.

        The carriers will build out their networks to support speeds better than “dial up”. Eventually the circuit switched voice networks will go away and voice will be just another use of the data network.

        In the long run you can count on it. It’s the natural way for it to work. Voice IS data. Carriers can fight it, but they can’t change reality.

        1. I’m not so sure about that. Yes it worked with Dial-up, because there was healthy competition. But not with 3-4 national wireless carries, as long such companies like T-Mobile and Sprint exist, we still have a chance.

          1. The reason I think it will work out is because demand for bandwidth is insatiable. Even these companies are staffed with people who want to do the same things as you and I. Depending on where you lived, dial up competition wasn’t much or any better than the current mobile situation. I think it is just a matter of time before new technology is deployed and they build out their networks to handle the bandwidth that enables the types of applications and uses people want. In time as that infrastructure gets paid for, prices will come down if there is any competition.

    2. Agreed. Though they are not going to give up easily. If they do, wireless carriers will essentially become delivery pipes, like copper broadband. Get ready for some ridiculous data pricing from wireless carriers if they are forced to allow VOIP =(

  2. Has it been confirmed? i fathom that someone would bid more than $8.5 billion though

    1. It’s confirmed and there is no one under the sun prepared to bid more than $8.5 billion. No one was going to spend $7 billion. This is Microsoft bidding against themselves the way only Microsoft knows how.

  3. Cool cant wait to use skype on my xbox.

  4. Sh*t just got real…

  5. Skype was a DUD anyway microsoft can have em. Google will be just fine without Skype.

    1. Skype was a dud?!? Put down the crack pipe and get some help.

      1. agreed. skype is HEAVY!

        1. yes also become so costly,

      2. Who benefits from exclusive garbage they was always pulling anyway?? Definitely not the entire platform of android. They catered to verizon and apple that’s not the whole world my friend so now you can go smoke your pipe

        1. Get real. In the world if skype, Android is small potatoes. I’ve used skype wi-fi calling in a pinch on my phone but the reality is that for video calling, I don’t think most people would like the experience once the novelty wore off. I would much more prefer using skype on my 17″ laptop or 10″ netbook any day of the week over a phone.

  6. meh…not that big a deal…..prolly wont change anything untill a few years and by then everyone has moved on

    1. go facetime your boyfriend and stfu

      1. Wow that was a little extreme, I don’t see any mention of iOS in Temporary101’s comment.

        Calm the hell down fanboy.

  7. That sucked. I still use more skype than google voice. Not that I would prefer google over ms, since google has reached and likely surpassed ms in evil meter, it’s just that everything ms touches turns into doo doo.

  8. Never really used skype. i think i have an account i’ve never used though. I personally have no problem with MS in general though so this really has no bearing on me whatsoever

  9. My dream scenerio.

    Microsoft ends up spending even more on Skype, significantly reducing their wad. (This would help to de-claw them.)

    Then the EU steps up with some restrictions on the deal requiring Skype to work equally well on Linux, Mac, Android, iPhone, etc. as it does on Windows and Windows Phone 9 (or 10 or whatever) (Thus de-fanging Microsoft)

  10. byebye Skype Linux/Android

    1. I don’t think that’s a given. Beyond MS just saying they plan on continued support for other platforms, it’s in their best interest to cross platforms and continue making all the money that Skype’s been making. You don’t have to use Android or Google Search to use Gmail, there’s no reason you’d have to use Windows or Xbox to use Skype.

  11. Why are Apple fans so pissed off about this. I know they’re retarded but why so angry?

  12. Damn sony psn needs to get on this!

  13. Back to IRC for me, I guess … :-(

  14. Totally bogus. I was sure that skype would really be working great on my dell streak by years end…bummer.

  15. Why Does it really matter if
    Skype is bought by microsoft or anyone else? There are tons of apps that will do the same thing. It is just that Skype is the most known video chat place.

    1. It’s one of the very few that does both VoIP and Video and they are very good at it. It’s a very well presented, organized and visually pleasing software.

  16. What everyone needs to understand is that this deal was more about XBox and less about everything else, even WP7. The problem with the phone side of things is you need the carriers to cooperate. With XBox, when integrated with Kinect, you just boosted your Kinect sales and put another notch in your belt in regards to the XBox 360 being a complete home media center and not just games.

  17. 8.5 billion…not a bad sum for the creators of skype, wow. I like that it will soon be integrated with xbox live, that’d be nice. I wonder though, any indication that the monthly price of skype may go up at all?

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