Linked by Thom Holwerda on Tue 10th May 2011 08:19 UTC, submitted by porcel
Microsoft So, the biggest acquisition in Microsoft's history. The Wall Street Journal reports - and it has been confirmed - that Microsoft and Skype will announce today that Redmond will buy Skype for $8.5 billion. That's a lot of money for a company that hasn't ever actually made any profits. Update: and it's official: yay on Skype on the Xbox360 and Windows Phone, and this: "Microsoft will continue to invest in and support Skype clients on non-Microsoft platforms." Let's hope this includes Linux.
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Comment by kaiwai
by kaiwai on Tue 10th May 2011 12:23 UTC
kaiwai
Member since:
2005-07-06

I'm going to head out on a limb but I'd say that the main reason for the purchase is to buy up the customer base and then eventually merge Skype into Microsoft Live Messenger (maybe rebrand Live Messenger as Skype but use the underlying Live Messenger technology) over time so that eventually there is a single service.

What their services need is not only to be improved (which they are) but to rapidly acquire users as well which can be done through the acquisition. The result can be one of two scenarios - the first the end user start investigating Microsofts online services and sign up for them or the second scenario is nothing happens and Microsoft have found they've acquired another money losing company :/

Reply Score: 3

RE: Comment by kaiwai
by Flatland_Spider on Tue 10th May 2011 13:46 in reply to "Comment by kaiwai"
Flatland_Spider Member since:
2006-09-01

MS could bundle this with their online SMB offerings. Office 365 already has the tag line "Ready to work, wherever you are."

Here's another clip from the O365 website: "Find and connect with friends or peers from virtually anywhere through rich presence, instant messaging (IM), PC-to-PC audio/video calls, and online meetings. "

PC-to-Landline audio calls, landline-to-Anything calls, etc. are missing from the list. Skype does a good job of filling the void. MS could have bought Vonage and gotten the same capability, but Skype is a better brand name.

Last piece of evidence. Microsoft Lync 2010. Lync is an awful name, and the money MS spend on Skype is a small price to pay to never hear about Lync again.

http://www.microsoft.com/en-us/office365/online-software.aspx

Reply Parent Score: 1

RE: Comment by kaiwai
by Athlander on Tue 10th May 2011 14:06 in reply to "Comment by kaiwai"
Athlander Member since:
2008-03-10

I'm going to head out on a limb but I'd say that the main reason for the purchase is to buy up the customer base and then eventually merge Skype into Microsoft Live Messenger (maybe rebrand Live Messenger as Skype but use the underlying Live Messenger technology) over time so that eventually there is a single service.



I was thinking something similar. I don't think Microsoft are interested in Skype as a profit-making business - I think it's about brand and getting it before anyone else does. In the same way "to google" has crept in to regular use, I hear more and more people saying "to Skype". That kind of recognition is hard to build up and/or dislodge.

I can see Skype replacing Messenger and also becoming an integral part of Outlook - a lot of the work has already been done.

Reply Parent Score: 3