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Microsoft Acquires Skype

mbegin [PersonRank 10]

Tuesday, May 10, 2011
12 years ago8,079 views

<< 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. >>

Philipp Lenssen [PersonRank 10]

12 years ago #

Wow. $8.5 Billion. Looks like they paid 50 bucks per active user.

Zim [PersonRank 10]

12 years ago #

So sad :/

Here's another reason to keep on using Talk instead...

Roger Browne [PersonRank 10]

12 years ago #

As everyone knows, the purchase of Skype is vastly overpriced. So what's in it for Microsoft?

Well, for one thing, they can use Skype to make life hard for Linux users. Oh, for sure, Linux might continue to be supported in some manner, but I'm sure the Linux version will be more glitchy and several versions behind the Windows version.

Also consider Microsoft's recent tie-up with Nokia. Essentially Microsoft rescued Nokia's ailing smartphone division in return for Nokia adopting Windows Phone in place of the open source Symbian and Meego operating systems. Possibly Microsoft has some big plan to do something exciting with Skype for their Nokia userbase.

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