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Wow! Biggest Deal In Software Giant’s History

skype-logoMicrosoft Corp. has agreed to buy the Internet phone company, Skype, in a takeover deal worth $8.5 billion (£5.2 billion). The deal is the biggest in the 36-year history of the software giant and gives Microsoft access to Skype’s 616 million users and about 8.8 million regular monthly subscribers.

Furthermore, Microsoft is expected to merge Skype’s functionality to its Xbox game console, Outlook email program and Windows smart-phones in a move described by some analysts as a risky bet on being able to integrate telephony with their enterprise products. Existing Skype users do not have to worry however, as Microsoft will continue to support the service on other software platforms.

Skype was launched in 2003 by software developers in Estonia and has grown so much ever since its creation. Last year, around a quarter of the world’s international calls were made via Skype, according to the organisation. Overall, users made 207 billion minutes of voice and video calls last year although the vast majority make use of its free computer-to-computer telephone service.

Talking Point

Is Skype worth the amount paid for it by Microsoft?

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  1. Travis

    May 10, 2011 at 11:56 pm

    The amount they paid seems a bit crazy. If they can figure out a way to get more enterprise out of it, I’m sure they can make some money. But given microsofts past and flops when acquiring companies, I’m not holding my breath. Good for the skype founders. I’m sure they made some nice cash 🙂

  2. Ava

    May 11, 2011 at 12:55 am

    I absolutely love Skype. It is so versatile and easy to use; and it makes communication face to face a lot easier. I’ve only ever encountered a problem with it once, where I somehow contracted a virus. Do you think with Microsoft taking over they will make advancements in preventing such a thing?

  3. Henway

    May 11, 2011 at 1:15 am

    The money is peanuts for Microsoft, but I think Skype is a strategic long term buy for them. They want their office suite to remain relevant among businesses and the best way to do so is to own Skype.

  4. Submit Articles

    May 11, 2011 at 5:51 am

    I just hope skype does not become crappy now 🙁

  5. Alan

    May 11, 2011 at 10:49 am

    8.5 Billion is really a huge deal between Microsoft and Skype, If they get merge then they can win the world easily.

  6. adam

    May 12, 2011 at 10:48 am

    Wow, what an amazing story, it was only 5 years I ago I heard about Skype, they have cleared the market up.

  7. johny

    May 13, 2011 at 8:26 am

    Its great news but it seems that Skype has been got over priced, although Microsoft dont want to leave any option to win from its competitor …

  8. Wholesale suppliers

    May 13, 2011 at 1:41 pm

    It is very big deal between Microsoft and Skype. I am afraid that it could be proven the worst deal for Microsoft because their competitors are also very professionals and tough as well. Now Microsoft needs to introduce more attractive feature for Skype.

  9. Nabil

    May 16, 2011 at 2:12 pm

    I only hope Microsoft doesn’t incorporate its bloated style of programming into their interface. If they do, a lot of users aren’t going to be happy. That being said, the price is astounding!

  10. Mr Nguyen

    May 16, 2011 at 7:52 pm

    I think the price is too high for Microsoft. It should be cheaper.
    Do you think ?

  11. Sandra

    August 29, 2011 at 5:47 pm

    It’s a bit difficult to say if the price is too high or not.
    I’m just wondering how they are going to earn that money back. Just integrating it into other Microsoft products won’t be enough.

    I just hope that they don’t make all of skype paid.

  12. Teake van der meer

    September 18, 2011 at 5:37 am

    I think the value of Skype is for the biggest part a big bubble.
    Those p/e’s they use for technology can be wrong too easily.
    Yes, skype is making money. But estimating a growth on technology companies and services are very dangerous and often wrong. Just one wrong move and Skype is heading into a different future.

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