Microsoft Acquires Skype for $8.5 Billion

Discussion in 'News and Article Submission' started by seanpr92, May 10, 2011.

  1. seanpr92

    seanpr92 Godlike

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    After rumors that first Facebook and then Microsoft were in talks to acquire Skype, the latter announced that it has acquired the VoIP giant for $8.5 billion in cash.

    Skype will be integrated into Microsoft devices and systems such as Xbox and Kinect, Xbox Live, the Windows Phone, Lync and Outlook, Microsoft said in a statement. The company has pledged to continue supporting and developing Skype clients on non-Microsoft platforms as well.

    The deal, which was spearheaded by Microsoft CEO Steve Ballmer with assistance from Charles Songhurst, the company’s head of corporate strategy, was completed Monday evening, AllThingsD reported earlier.

    The acquisition is an expensive one for Microsoft. Not only is it the largest price Microsoft has paid for a company in decades, Skype is not yet profitable. Despite revenues totaling $860 million last year and operating profits of $264 million, the company lost $6.9 million overall, according to documents filed with the SEC. And the company carries $686 million in debt.

    Much of the company’s appeal rests in its largest user base of 663 million, 145 million of which use Skype monthly (Update: Microsoft says Skype has 170 million regular users), and 8.8 million of which are paying customers.
     
  2. Michael_T

    Michael_T Addict

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    Another good prog gone . I'm sure that in the future Microsoft will ask for money to call to added users . Too Bad . :(
     
  3. InsaneNutter

    InsaneNutter Resident Nutter Staff Member

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    Microsoft has always offered free calls and video chat on Windows Live Messenger so I dont think they will. If they charged for calls between Skype users that would basically kill the service in my opinion.
     
  4. Michael_T

    Michael_T Addict

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    Not so sure about that. For MSN it will be free , but i really think that they will start asking money for skype.
    That way more users will use MSN .
     

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