Microsoft close to buying Skype

UPDATE: It’s official! Microsoft bought Skype for $8.5 billion. Plans include integrating it into Xbox, Kinect and Windows Phone.

Earlier this week, it was Google and Facebook who were dueling to buy VoIP company Skype. But it was Microsoft who came out of nowhere that’s closed to inking a deal to acquire Skype for more than $8 billion. The deal could be announced as early as tomorrow and it would be Microsoft’s biggest acquisition in three decades.


Microsoft Chief Executive Steve Ballmer, though, sees the Internet as an essential battleground for Microsoft, a company that still makes the vast bulk of its profits from Windows and Office software systems. This move is expected to strengthen Microsoft’s various online communication platforms, from Windows Live Messenger to Microsoft Lync.  Skype would also play a role in helping Windows Phone 7 catch up with Apple and Google in the mobile-phone market.

Skype was founded in 2003 by p2p-software Kazaa creators Niklas Zennstrom and Janus Friis. In 2005, Ebay purchased Skype for $2.6 billion in cash but sold a majority to private investors in 2009. Now, Microsoft will be the owner of this online telephony giant and its low profits, debts, legal mess and all.

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  • dude

    Sold! To the highest bidder. FB and Goog couldn’t hang. Congrats to MSFT for turning the best thing on VOIP to another commodity. Look out for Skype Premium, Business, Pro, Home, Starter Kits at a box retailer near you. Innovation stifled…

    Good news for MSFT and Skype angel investors, bad for all the loyal Skype users.

    • Calvin


      bad for iOS and Android users. no more interoperability with the PC Skype users unless Microsoft will still allow skype app on those OS’s. ouch, Skype for iPad might not materialize.

  • jessica

    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?

    • limos

      No it is bad and I think that skype user will suffer for high calling charges because MS pay more then want to earn more so MS will be increased calling cost.

  • Air21

    Good lack apple and Google.

    • Air21

      lol, it’s luck.

  • ikumpara

    Of course Microsoft knows what they’re doing, but in this case I’m wondering about the goal. Of course they want to take this away from Google and FB, but they won’t be buying it for just the profit since MS had $50 billion in cash last March.

    Of course they will want to implement this in their Windows Phone 7, which they have just started to cooperate with Nokia. But the problem that will rise is, that cell phone providers will now start to cut of VoIP services on their Mobile Internet Networks. T-Mobile started this in the UK not too long ago and in The Netherlands it’s happening as we speak. This will be the new trend, because cell phone providers will see their income to be cut off due to Skype and WhatsApp alike apps.

  • Cebu Tech

    skype is great though but this is gonna be the start taht google has to simply create one of their own.

    • Calvin

      nah, they’re just going to enhance google voice.

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  • John Z

    I have to say I am a little surprising to hear the news. The first time I heard about news, though Facebook is gonna close the deal. But MS’s purchase is really rapid. In a word for Business world “money moves everything” especially in the digital world.