Microsoft Is Now Skype’s Owner, After Paying $8.5 Billion

Skype on Windows Phone 7

Photo Credit: @WPCentral

Update: Microsoft has confirmed the acquisition. Skype will support Microsoft devices and services, including Xbox, Kinect, Windows Phone, Lync, Outlook, Xbox Live and other communities, according to the press release. The Redmond-based company assured that it will still invest and support Skype clients on non-Microsoft platforms.

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In mid-April, Microsoft’s Joe Belfiore confirmed that Skype will be coming to Windows Phone 7 this fall. Little did we know, by the time it happens, Microsoft will be the new owner of Skype.

Earlier reports signaled that Facebook and Google expressed interest in buying or partnering Skype. Efforts by both the internet giant is however proven futile when WSJ reported today that Microsoft will be acquiring Skype for $8.5 billion in cash.

While the WSJ report states that the negotiations aren’t yet final and the deal could still fall apart, AllThingsD was told the deal is sealed and an announcement will be made as early as tomorrow morning.

The deal, if worked out as reported, will be Microsoft’s biggest acquisition in its 36-year history.

At this point, it’s still unclear how would Microsoft justify the purchase. A Skype-powered FaceTime equivalent for Windows Phone 7 perhaps? For now, FaceTime is limited only to Apple products, and video calls can only be made over Wi-Fi.

By integrating Skype into Windows Phone 7 natively, its users can make video calls to any Skype users out of box (Skype has 663 million users at this point) — not limited by platform or connection type. The only thing Skype doesn’t triumph is the need of yet another account.

Make it possible to sign up with just our phone number (like Viber and Whatsapp), or even sign in using Facebook Connect and it’ll be one step closer to perfection.

That being said, a Facebook-Skype partnership could still be possible despite Microsoft’s acquisition. After all, Facebook is already integrated in Skype and Microsoft’s Windows Live Messenger to some extend.

Go ahead with the partnership, make it possible to video call from Skype to Facebook Chat without additional software (ala video chat in Gmail) and vice versa. That’d put FaceTime to shame.

#acquisition#Microsoft#Skype

Comments

  1. dile - May 24, 2011 @ 4:11 pm

    great deal, looking for a great change

    Reply

  2. business review - June 22, 2011 @ 10:49 pm

    Owners of Windows Phone 7 devices will be pleased to know that their favorite instant messaging app Skype will be available for download this fall.. ..Skype will be coming to the Windows Phone 7 platform this fall were the words that came out of Joe Belfiore while delivering his keynote at the exciting MIX11 event..Will the first version of the app have the full feature set or will it miss out on some of the more advanced feature such as group video calling and others? After becoming deeply integrated with Facebook previously Skype has now added some more interesting and tempting Facebook features in its 5.5 beta version of Skype for Windows.

    Reply

  3. hemp - July 21, 2011 @ 6:27 am

    Owners of Windows Phone 7 devices will be pleased to know that their favorite instant messaging app Skype will be available for download this fall.. ..Skype will be coming to the Windows Phone 7 platform this fall were the words that came out of Joe Belfiore while delivering his keynote at the exciting MIX11 event..Will the first version of the app have the full feature set or will it miss out on some of the more advanced feature such as group video calling and others? Facebook the biggest social network has finally revealed it s new in-browser video calling facility powered by Skype that we told you about in our previous post.

    Reply

  4. Steve Cattell - July 25, 2011 @ 1:19 pm

    Well Microsoft and Google seem to be in a war to acquire services that have a high demand on the net. Feedburner was taken over by Google and now Microsoft has got its hands over Skype. A nice strategic move by them.

    Reply

  5. Offshore Opportunities - September 11, 2011 @ 10:37 am

    Microsoft is really doing everything it could to outrun Apple. With the integration of Skype to all Microsoft products (both pc and smartphones), I think people would blown away. Being able to video-call on your phone with as clear connection as possible is something most people would want to experience for a very long time now.
    Great job Microsoft. Very wise move.

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  10. Sie Sagten - July 11, 2013 @ 8:46 am

    Microsoft phased out its long-standing Windows Live Messenger instant messaging service in favour of Skype, although Messenger will continue in mainland China. Microsoft began this transition in April 8, 2013, and completed the move by April 30.

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