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Microsoft Gets Green Light For Skype Acquisition

Microsoft clinched a huge win towards finalizing its Skype acquisition having now approvals from both the European Union and the United States to proceed.  In an $8.5 billion deal, Microsoft has secured perhaps its largest investment since its 2007 $6 billion purchase of aQuantive to expand further into online advertising.

“We’re pleased that the European Commission has approved Microsoft’s acquisition of Skype. This is an important milestone, as we’ve now received clearance from both the United States and the European Union. We look forward to completing soon the final steps needed to close the acquisition, bringing together the employees of Microsoft and Skype, and creating new opportunities for people to communicate and collaborate around the world,” stated Brad Smith, General Counsel and Executive Vice President, Microsoft Corporation.

What makes Skype so attractive to Microsoft is that Skype has become one of, if not, the most popular means of real-time communication through instant messaging and voice/video conferencing, a medium which has been widely adopted for both business and personal use on smartphones, desktops and tablet PCs.

While Microsoft already offers a variety of real-time communication solutions , boasting more than 500 million MSN users, it just doesn’t have the same reach that Skype will bring to the table. 

- Skype has partnerships in place with Facebook as the primary means to instant message and video chat Facebook friends. With Microsoft acquiring Skype and its 1.6 percent stake in Facebook, Microsoft will now have access to the potential 750 million Facebook users using Skype.

- Skype is actively used by Apple customers on their iPad and iPhones. Apple owns 74 percent of the Tablet PC market and almost 6 percent of the global phone market. Microsoft via Skype can also tap into this broad user base.

- Skype will facilitate for Microsoft a better means for user authentication and a wider reach in promoting its other products to the more than 170 million daily active Skype users.  It is one of the many strategic moves Microsoft  has set in place to reclaim its presence and market share in the smartphone and tablet PC arena.

Where Google and Apple currently dominate in the smartphone market, Microsoft hopes that its new partnership with Nokia Corporation, in a move to have Microsoft software power its smartphones, will make an impact with its upcoming Windows 8 OS targeted specifically for the smartphone and tablet PC market.

While it remains to be seen how successful this new acquisition will be for Microsoft, the rest of us can only await the outcome of whether this will affect our Skype usage fees as a means for Microsoft to recoup some of the billions spent on purchasing Skype.

  • icepick314
    what can MS do differently when eBay failed miserably?

    I sure can't think of any...
    Reply
  • RogueKitsune
    Well time to start looking for an alternative to Skype so when M$ F's it up I will have a back up plan.... Not saying that they will screw it up, but Microsoft sort of has a history of fixing things that are not broke.
    Reply
  • simonyeeklang
    Bill Gates and Ballmer should resign from Microsoft immediately.
    The way they think they can be greedy and buying this and that company will not help the Information Technology industry. All the US and European Union care about is only $ :(
    Reply
  • naterandrews
    Microsoft, like any other company, is "all about money", they ARE a business after all. I don't think that we'll see too much happen overnight to Skype. What we will see is Skype patents and IP used in Bing, XBOX, Microsoft's hardware division, Windows and Windows Live and particularly Office. I think that Microsoft can make the Skype network greater with their resources and reach, and even get it in the hands of professionals through their powerful Server and Enterprise division.

    Chances are you use a product or service that is owned by Company XYZ and you don't even know it. I think of this as a good thing for the web, for multi-platform Skype users and for Microsoft (which many people still use IE, etc.- and would benefit from this acquisition.)
    Reply
  • amk-aka-Phantom
    icepick314what can MS do differently when eBay failed miserably?I sure can't think of any...
    GTFO troll
    Reply
  • simonyeeklang
    Microsoft and Skype will be huge magnet for virus, hacking and spywares
    Reply
  • the_krasno
    I like this, since I can't get most of my friends to ditch MSN for Skype maybe there will be some kind of cross-platform communications?
    Anyway, the resources Microsoft has can only mean good things for Skype.
    Reply
  • amk-aka-Phantom
    9315992 said:
    I like this, since I can't get most of my friends to ditch MSN for Skype maybe there will be some kind of cross-platform communications?
    Anyway, the resources Microsoft has can only mean good things for Skype.

    Who the hell uses MSN? :heink: I don't know ANYONE who uses it.
    Reply
  • back_by_demand
    icepick314what can MS do differently when eBay failed miserably?I sure can't think of any...amk-aka-phantomGTFO troll+1000 to you.
    Reply
  • The author of this article has an interesting name "C YB"
    Reply