Microsoft Snaps Up Skype for $8.5 Billion

Discussion in 'Travel Technology' started by Funtodoimpossible, May 10, 2011.  |  Print Topic

  1. Funtodoimpossible
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    Microsoft (MSFT: 25.83, -0.04, -0.15%) revealed plans to acquire Internet telephone company Skype for $8.5 billion in cash, the largest deal in the technology company's history.

    The company plans on rolling Skype's communication technology into many of its pre-existing platforms, such as its gaming system Xbox and its Windows mobile phones, the company said in a release.

    <snip>
    http://www.foxbusiness.com/markets/2011/05/10/microsoft-nears-85-bln-skype-buy-web-shift/
     
  2. milchap
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    milchap Gold Member

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    The $100 question is ....will Skype video still be free?
     
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  3. Funtodoimpossible
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    Very good question...I'm betting I'm now not going to see Skype video anytime soon for Andriod.
     
  4. TRAVELSIG
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    and will they integrate it into their rubbish messenger system?
     
  5. viguera
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    This is typical Microsoft deep-pocket strategy. Not two weeks ago there were talks that both Facebook and Google were looking into purchasing Skype, so obviously they had to jump in there. Better to snap something up even if you don't have immediate plans for it than to let someone else get it :)
     
  6. RSSrsvp
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    I wonder how this will affect the market share of windows mobile cell phones?
     
  7. bakedpatato
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    I had originally heard 8 billion...that extra 500 mil is chump change eh?
    MS's Windows Live Messenger standard client is much better than AIM's standard client...it doesn't look like it was created in the 90s plus the video support is well integrated. Not that I notice, I use Trillian Astra or Pidgin or Adium .
    Not really...MS doesn't like buying out companies. They're big on in house development. Look at Xbox...if I was MS I would've just bought out Sega's Dreamcast division (considering it ran Windows CE anyway) instead of developing my own Celery/Nvidia powered x86 computer ;)And WP7...they could've bought out RIM or something hahahhaa.....
     
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  8. canucklehead
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    Good for those who bought 65% in 2009. Tripling on investment (Canada Pension Plan Investment Board was one of the investors buying approx 10% of Skype!)
     
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  9. viguera
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    But at least they're learning from other companies that in-house development is not always the solution. MS used to live by their "embrace and embelish" policy, and when that changed you saw a lot of startups with a lot of cash start infringing on their turf.

    Look at what happened with the Kin phones... they spent $250 million on that and the result was two phones that were around for a few weeks. They spent who knows how much money on the "Courier" tablets that never materialized, etc.

    Don't get me wrong, the MS Development Center is responsible for some great innovations, but there are some things that you shouldn't try to re-invent. If they go to ground and spend years developing a competitor to Skype to integrate into their products -- even though the Kinect video chat is "decent" and other alternatives exist -- by the time they're done they would have spent a significant amount of resources and -- more importantly -- someone else would have snatched Skype and integrated it into their products.

    Better they do it now and see what they can do -- like Google did with Grand Central -- than spend a couple of years coming out with something on your own and then it turns out nobody likes it and it's inferior to an already existing product.
     
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  10. emajy
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    Probably keep single video chat free and charge for group video chat. Now the question is when will there be a next Skype Mac upgrade?
     
  11. bakedpatato
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    I totally agree with you; Skype is THE market leader for video/voip. MS isn't buying IP, they're buying marketshare.MS has tons of money and frankly they should be using it.
    Kin and Courier are due to a flawed corporate structure.
     
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  12. Jim
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    I suppose better MS than ATT
     
  13. bakedpatato
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    Hm? It was either Google or Facebook that was in the running to buy em..
     
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  14. Gargoyle
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    Yes, but it will only work with Windows 7 or Mac OS and IE 9.
    Linux, Firefox and WinXP will not be supported.

    :p
     
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  15. milchap
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    I have those programs. :D
     
  16. bakedpatato
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    Not like the Linux port is very well supported. :D
     
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  17. adambadam
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    I have to say I wouldn't be surprised to see Skype more closely integrated with Office Communicator than Live Messenger. I think one of the synergies that Microsoft will be able to leverage would be a very fully connected Exchange platform that now can easily place calls to a user whether they are at their computer or on a mobile phone via a cheap VoIP rate all over the world.
     
  18. BurBunny
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    And especially not for Blackberry on carriers other than Verizon. :( As good as BBM is if you're talking to another BB, cross-platform just is a pain internationally.
     
  19. Freddie Listo
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    Meh. I could spend it in a weekend.
     
  20. bakedpatato
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    A fleet of Miatas and Cessna Citation Tens? :D
     
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  21. taiwaned
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    Would that include companies like TOM Skype? (The Chinese version which allows the government to monitor what you say and type.)
     
  22. sobore
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    May 2012: Microsoft Sells Skype for $1.5 Billion. :D
     
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  23. HaveMilesWillTravel
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    They don't sell. They just discontinue.


    I don't think that's an accurate statement. Sure, they do a lot of in-house development, but they are not shy about licensing or buying technologies, products and companies. Examples are

    - Internet Explorer (originally based on code licensed from Spyglass)
    - significant portions of their enterprise software product suites (Great Plains software, Navision) were acquired and they have had talks with SAP as well in years past
    - Visio was acquired
    - Hotmail
    - WebTV
    - Danger
    ...

    Complete list: http://en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Microsoft
     
  24. Freddie Listo
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    That would be a good start . . . ;)
     
  25. bakedpatato
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    Fair enough. Perhaps I meant to say "MS really favors in house development and the things they buy they chicken up(ie: Danger=Kin)" :D
     

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