Microsoft buys Skype for $8.5 billion

So the rumors are true that Microsoft is buying Skype for an allegedly $8.5 billion big bucks. Microsoft published the official press release a few moments back.

skyeeBay bought Skype back in 2005 for around $2.6 billion. Not having found any good use for it (was supposed to be integrated to the eBay), the auction site was ready to sell it off as early as 2008.

It was then bought in 2009 by an investment group (Silver Lake, eBay International AG, CPP Investment Board, Joltid Limited in partnership with Europlay Capital Advisors; and Andreessen Horowitz.)

The $8.5 billion agreement (to be paid all in cash) looks to be the biggest purchase Microsoft has ever made.

Skype will support Microsoft devices like Xbox and Kinect, Windows Phone and a wide array of Windows devices, and Microsoft will connect Skype users with Lync, Outlook, Xbox Live and other communities. Microsoft will continue to invest in and support Skype clients on non-Microsoft platforms.

The sale agreement is interesting considering that Microsoft also has it’s own VOIP service in the form of Microsoft Live. However, the 170 million strong user-base of Skype could be the biggest attraction to this agreement.

Microsoft will be creating a new business division called the Microsoft Skype Division, which will also be led by the current CEO of Skype.

30 Comments on this Post

  1. another merge again. i hope skype will still offer free calls

    • dont worry, skype will offer more and more free calls to attract more and more users. in this way skype can gain more strength in delivering your voice by using neighbor’s bandwidth.

  2. benchmark

    sabi nga dun sa isang comment regarding buying sun by PLDT, “if you can’t beat them, buy them”.

    • Fleeb

      but unlike PLDT and Sun, Microsoft is not comp eting directly with Skype. Google Voice perhaps?

    • Benchmark

      As per the post, Microsoft have Microsoft Live…what I am saying is that, since Microsoft Live can’t beat Skype, they purchase Skype. Why didn’t just upgrade their Microsoft Live? Probably time..since andyan na yung system ng Skype, and may subscriber na din, why not buy them na lang…easiest way to beat the competing body. :)

    • syunga ka ba?!

      syunga ka ba?!,ang smart and sun direct competitor sila dahil pareho ang services na ino-offer nila, unlike microsoft and skype.

    • Benchmark`

      Like what I posted above, Microsoft Live is directly competing with Skype.

      As the post below, I agree, somewhat Microsoft doesn’t trust their own infrastructure of MS Live, so better buy Skype na lang, para ok na lahat.

  3. kebbot

    I hope Nokia will have skype video calling soon…

  4. Fleeb

    @benchmark: but unlike PLDT and Sun, Microsoft is competing directly with Skype. Google Voice perhaps?

  5. ^^^ Nice Idea if ganun ang mangyari.

  6. poche

    same as sa digitel yun ceo din ng skype ang uupo as head ng division na yun kaya wala problema mas gaganda pa nga infrastructure ng skype nian at mas dadami users since iintegrate sa ibat ibang ms products.

    by the way ang tinalo ng microsoft sa skype bidding e facebook at google.

  7. Name:

    8.5 billion…not a bad sum for the creators of skype, wow. I like that it will soon be integrated with xbox live and kinect, that’d be nice. I wonder though, any indication that the monthly price of skype may go up at all?

  8. I love Skype. Hopefully MS will make it even better.

    • yes you are right. I also hope that Skype will be integrated with new features.

  9. 8.5 billion – a big number. Will Skype accept or they will like Yahoo ?

  10. MS will launch this as Microsoft Skype Network or Microsoft SkyNet :D

    • reminds me of Skynet in terminator. They’ll end the world. lol

  11. sylv3rblade

    This probably spells death for Skype on the PSP.

    Also, it makes sense to buy out skype considering they’re offering a similar service for their enterprise customers (with more Office integration).

  12. florencia

    wow. ibang klase talaga Microsoft.

  13. so microsoft lacks the faith for their own chat/online services like windows live and msn? their messenger basically offers the same features like skype. save for the landline and mobile calls features maybe.

  14. nameless

    Currently im using SKYPE for LINUX. what about now?

    • its just like putting gameboy rom on psp umd. XD.

      no,i think it will work fine.

  15. i think this is a good move from them, imagine you have 170 million user base :). Talk about upsells and rebills. Besides more businesses are moving to a more cheaper telecom services. Video conferencing should be a standard on all pc’s in the future too :)

  16. Wow!a good move for Microsoft, hope Nokia will be supported by Skype din so there’s would significant improvements.

    Guy,s I just know Windows 8 screenshots is one of the hottest rumor this month….

    Thanks Yuga.What if Microsoft will buy Yugatech?

  17. Aww, I hope that Skype will still continue to develop Skype for Android Honeycomb…

  18. I hope Skype’s quality doesn’t drop with Microsoft in it and only becomes more effective. Systems like skype are quite sensitive. Skype really deserves something because it makes the communication so easier. There is no match for skype at the moment in the electronic communications industry.

    The price is low though I think. As compared to facebook which they price at $25 Billions, skype has more utility but it’s price is low!


  19. It is a copy-cat move to Apple’s Facetime.

    • I love Skype. I am able to talk to my loved ones in the Philippines even when I am like 3000 miles aways from them. By the way, I am using Skype for Android, Apple’s Facetime sucks big time.

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