Microsoft Buys Skype

The news came out earlier this week that Microsoft is buying Skype for $8.5 billion.

For the few who aren’t aware, Skype (www.skype.com) is one of the most popular video calling services, as well as offering low-cost computer-to-phone voice calling.

Since this is Microsoft’s most expensive acquisition ever, it’s sparked numerous speculations about why they did it and how they will integrate the technology and the people into Microsoft.

I tend to agree with the thought that Microsoft made the buy to keep Skype from falling into a competitor’s hands and now that they have it, they’ll figure out what to do with it. (http://www.irishtimes.com/newspaper/finance/2011/0513/1224296839354.html)

There is a lot of speculation, of course, now that the Xbox has the Kinnect (which is, in essence, a webcam) that it is only natural for Microsoft to make Skype services available on the Xbox.  This would allow for video chatting using your television and the game console that already has 35% of the market share. (http://www.thestreet.com/story/11114279/1/microsoft-skype-deal-boosts-xboxs-game.html)

What do you think? Why do you think Microsoft made the biggest buy of its existence?  What do you think that they should do with the technology?  What are your concerns?  Post some comments and let me know what you think.

Leave a Reply