Monday, May 16, 2011

Microsoft has acquired Skype for $8.5 billion

Microsoft has made the most expensive deal by buying Skype for $8.5 billion. Earlier, it was reported that Facebook and Google were negotiating to purchase Skype.  
Microsoft is planning to develop a new business division with Skype by implementing the services in the XBOX gaming console, Kinect motion-sensing device and also on the Windows phone platform. It will interconnect Skype users with Xbox Live, Outlook and Lync as well. Of course, Microsoft will not harm non-microsoft platforms and will continue to support them too. Skype CEO Tony Bates is going to assume the title of President of the Microsoft Skype Division.
The reason behind the purchase of Skype by Microsoft is that “Skype is a phenomenal service that is loved by millions of people around the world, and together both companies will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world”.
As Social Media Marketing is getting more and more popular now-a-days, Microsoft will be trying to put Skype in all Windows powered devices and perhaps will strike deals to incorporate Skype in innovative products like Smart TVs and more. But the question that is roaming around is was it necessary for Microsoft for spending such a huge amount to buy Skype. Researchers reported that Microsoft being one of the biggest software company, with the talent and technology, could have built their own application at a much cheaper price.
Microsoft has been pushed into the background of our daily lives, and no matter what they try to do they can't break into what dominates our attention. Music, entertainment, search, or even mobile connectivity. They have only been a successful dominant player in video gaming. Buying Skype extends their reach into mobile markets, as well as Apple, Android, and even Linux communities. "50 million users have installed Skype for the iPhone". Obviously, the only way Microsoft could make inroads to 50 million iPhone users - would be to buy their way in via a product that was already there. Only time will tell if that was a smart move, or not.
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