Microsoft Says "Hello!" To VoIP
This has got to be one of the biggest deals of 2011. Microsoft has bought Skype for $8.5 billion in cash.
This is one of the biggest acquisitions Microsoft has made in ages. Last being, the obtainment of Greenfield Online for $486 million in August 2008. Actually, this is Microsoft's biggest financial gamble till now. The most they have spent on acquiring a company (aQuantative) was $6 billion in May 2007.
According to the agreement between Skype & Microsoft, Skype will form a new division in Microsoft. The current chief executive, Tony Bates will be the President of the division and will report to none other than Microsoft CEO, Steve Ballmer himself.
Microsoft's pricey new possession will increase the accessibility of real-time video and voice communications and users can expect Skype Video for Android and other such developments pretty soon.
But, isn't $8.5 billion a bit too much for a company which as lost about $7 million last year?
Perhaps, Ballmer has a trick up his sleeve which we will be wowed with later this year. The chances for this partnership to blossom and put some money in the bank for Microsoft & Skype, are quite high since Skype is a very valuable asset for Microsoft. Skype connected about 170 million users all around the world and exchanges about 207 billion minutes of voice and video conversations in 2010. Skype has been almost everyone's first choice when it comes to Voice Over Internet Protocol options since it provides cheap calling rates to landlines and cell-phones.
It goes without saying that Skype will very soon be available on Microsoft's devices like the X-Box 360, Kinect and Windows Phone. Microsoft will also connect Skype users with Lync, Outlook, X-Box Live, Bing, Windows Live Messenger and other such services. Microsoft will also continue developing and optimizing Skype for platforms other than Windows. So, Android, Mac and iOS users have nothing to fear!Continued on the next page