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Microsoft to Acquire Skype for $8.5 Billion

Rumors of the acquisition broke last night, and this morning Microsoft has confirmed that they are acquiring Skype for $8.5 billion.

Microsoft Corp. (Nasdaq: MSFT) and Skype Global S. r.l today announced that they have entered into a definitive agreement under which Microsoft will acquire Skype, the leading Internet communications company, for $8.5 billion in cash from the investor group led by Silver Lake. The agreement has been approved by the boards of directors of both Microsoft and Skype.

Skype is the popular voice over internet service that also offers a Mac and iOS App version.

Microsoft reports that Skype will support Microsoft devices like Xbox and Kinect, Windows Phone and a wide array of Windows devices, and Microsoft will connect Skype users with Lync, Outlook, Xbox Live and other communities. The press release also states that they will continue to invest in and support Skype clients on non-Microsoft platforms.

Top Rated Comments

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102 months ago
$8.5 billion?????
Rating: 28 Votes
102 months ago
And you thought the Skype 5 update for Mac was a step backward... :rolleyes:
Rating: 21 Votes
102 months ago
Thank god the world ends in 2012.... doesn't leave Microsoft enough time to screw this up!
Rating: 16 Votes
102 months ago
So is this going to become a pay service now, and require us to enter complicated license keys every time we try to call someone?


I am kidding. But, hopefully Microsoft can actually improve Skype going forward. Perhaps some Competition for Google Voice.
Rating: 10 Votes
102 months ago

I just do not see the logic behind paying 8 billion

You cant see it because it doesnt exist.
Rating: 6 Votes
102 months ago
I can't wait to see how they screw this up. It will be like the three stooges.
Rating: 6 Votes
101 months ago

So then was Bill Gates using it wrong?

Bill Gates - Windows Media Center Blooper

Bill Gates, Windows 98 Blue Screen of Death

How about all the people in these videos?

Windows 7 Crashes On Live TV

Windows 7 Blue Screen of Death

Is the guy in Japan pressing the icon on the desktop of a touch-based Windows 7 PC touching it wrong? Is it a "bad touch? :rolleyes:

Yeah, because every single demo of every Apple product has gone flawlessly well. :rolleyes:
Rating: 6 Votes
102 months ago
To be honest, something doesn't feel right.

To invest in Kinect/Xbox/WP7 and even Windows integration, they could have partnered with skype.

This doesn't feel good. :(
Rating: 6 Votes
102 months ago

Most of you critics would be praising this deal if it was Apple making the acquisition.

Don't be doing irrational things like speaking the truth, or the fanboys will vote you down... oh look, they already have.

Fwiw, I agree with you. Apple does not rule the world, and, tbh, they're becoming quite boring and predictable.


Ironically, people in apple circles are always waffling on about how so-and-so copied this, that or the other from the mighty apple, and yet look - MR has "copied" (?) the digg vote up/down feature.
Rating: 6 Votes
102 months ago

Personally, I say good riddance. Skype has poor video chat quality and is lacking features that other chat apps have. Too bad Apple made Facetime a paid app, or they could take this opportunity to capture the inevitable fallout when Microsoft screws up Skype and everyone looks for a better solution. Instead people will just look elsewhere for one of the many other free solutions.

Until Apple makes Facetime multi-platform, it's just a toy. While iOS has a relatively large user base relative to smart phones, the Mac is a drop in the ocean compared to Windows based PCs. Apple won't support Linux for absolutely anything (Safari, iTunes). Skype is available for many platforms, both desktop and mobile and mobile smart phone and thus the user base is closer to a billion+, not a mere 30-60 million. I've used Skype on my iPod Touch to talk to family members that have Windows7. I haven't been able to use Facetime with ANYONE yet because everyone I know either has an older iPhone (e.g. 3GS) that doesn't have a forward facing camera or uses Windows and/or some other brand of smart phone. Plus you have to pay to get Facetime for the Mac (older Macs need not apply either). Skype (up until the most recent revision) even works on my PowerMac (PPC) Mac.

What it comes down to is Apple is about selling more hardware every year and uses software to prop up hardware sales while companies like Skype (and Microsoft) are about selling software to as many people as possible. The former is good for making corporate profits, but isn't doing anyone else any favors. Businesses aren't going to use Facetime. Apple has little interest in businesses anyway. Microsoft knows where its bread is buttered (business and platform gaming) and Skype can help them with both. I wouldn't count on them pressing versions for every odd platform anymore, though. Microsoft has a disdain for Linux too just like Apple and you can be sure that if Microsoft decides cutting off other mobile platforms benefits them, they won't hesitate too much to do so (i.e. their own smart phone OS isn't doing too well).
Rating: 5 Votes

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