Microsoft Corp. is nearing a deal to buy the popular Internet telephone service Skype.That could be the biggest deal in the 36-year history of Microsoft Corp.($6 billion purchase of the online ad service aQuantive in 2007 was biggest till now)
Microsoft is buying skype for $8.5 billion, so Skype will be a new division of Microsoft. So it shall be integrated in many Microsoft products like Windows Phone, XBox Live and many more. “We will move beyond email and text to rich experiences. Talking to colleagues across the world will be as seamless as talking to them across the table,” CEO Steve Ballmer predicted. “This allows us to extend from hundreds of millions to billions of people. We think this is a set of services that can reach everyone on the planet,” says Skype CEO Tony Bates. The agreement has been approved by the boards of directors of both Microsoft and Skype.
They know that 40% of total usage of skype is video. So skype and xbox are being used more like a home video conference system. It shall connect you to those people who you often talk to most of the time.
Buying Skype would give Microsoft a potentially valuable communications tool both for personal computers and smart phones.The acquisition will increase the accessibility of real-time video and voice communications, bringing benefits to both consumers and enterprise users and generating significant new business and revenue opportunities. The combination will extend Skype’s world-class brand and the reach of its networked platform, while enhancing Microsoft’s existing portfolio of real-time communications products and services.
Skype is having a 663 million users worldwide who make voice and video calls over the Internet. The amount of calling on Skype's network totaled 207 billion minutes last year,Still Skype lost $7 million on revenue of $860 million last year.
About Skype:
Skype is communications software whose purpose is to break down barriers to communication. With an Internet-connected device, families, friends and colleagues can get together for free with messaging, voice and video. At low cost, they can also call landlines or mobiles virtually anywhere in the world. Skype has recently introduced group video, allowing groups of more than two people to do things together whenever they're apart. Founded in 2003 and based in Luxembourg. Skype can be downloaded onto computers, mobile phones and other connected devices for free.
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