Microsoft in Talks to Acquire Skype for $8.5 Billion

[Gerald]

Microsoft is in advanced talks to acquire Skype, which revolutionized telephone calls over the Internet, for $8.5 billion, including the assumption of debt, according to people involved in the negotiations.

A deal is expected to be announced Tuesday morning, these people said, although they cautioned that the talks could still fall apart. A spokesman for Skype declined to comment, and calls to Microsoft were not returned.

The acquisition would be Microsoft’s largest ever and it is the software giant’s effort to gain a foothold in the world of voice and video communications. Microsoft would be able leverage Skype’s more than 600 million registered users into using its other products. For example, it could be connected to Microsoft’s Xbox 360 and Kinect systems, and integrated into the company’s flagship product, Office, as a way for business users to better collaborate.

http://dealbook.nytimes.com/2011/05/...ref=technology

Note: May 9, 2011, 11:01 pm

[Sledgehammer427]

while i see this being a good idea, I really dont want to see skype being swallowed by Microsoft. call me selfish but I like skype by itself

[Gerald]

This can easily tend to skype, lost in the crowd,but all that new technology can be invested with new money, to maintain standards and security, there's no news that the company has had problems and instability for some users, and in the long term benefits the customer in the end, all it is, I think a tactical move to strengthen market positions.

[Fish In The Water]

Skype already provides a great service (witness 600 million users) so it seems unlikely Microsoft can improve on such success. At the risk of generalizing, when the big get bigger, it's usually bad news for consumers.

[Gerald]

Microsoft has confirmed that it has agreed to buy internet phone service Skype.

The deal will see Microsoft pay $8.5bn (£5.2bn) for Skype, making it Microsoft's largest acquisition.

Luxembourg-based Skype has 663 million global users. In August last year it announced plans for a share flotation, but this was subsequently put on hold.

http://www.bbc.co.uk/news/business-13343600


Note: Update Record,10 May 2011 Last updated at 13:54 GMT

[UnderseaLcpl]

Originally Posted by Fish In The Water

Skype already provides a great service (witness 600 million users) so it seems unlikely Microsoft can improve on such success. At the risk of generalizing, when the big get bigger, it's usually bad news for consumers.

Not as true as one might think, but with Microsoft that's a pretty safe generalization to make.

[Gerald]

Originally Posted by UnderseaLcpl

Not as true as one might think, but with Microsoft that's a pretty safe generalization to make.

[the_tyrant]

skype will end up like IE, bundled with every copy of windows

[Fish In The Water]

Originally Posted by the_tyrant

skype will end up like IE, bundled with every copy of windows

And also like IE it will likely end up lagging behind the competition in new features. Right now Skype is riding high, but if and when it becomes a small part of a big empire, it'll no longer have the same singular passion that kept it on the cutting edge.

Give it a year or two and the competition will not only catch but probably surpass Skype. I don't claim to know the future, but if recent history is any guide, Skype will likely stagnate under the Microsoft banner while the smaller competitors will flourish by focusing on trying to do just one thing as well as possible.