Microsoft buying Skype for $8.5 billion? [updated]
Despite rumors that Google and Facebook were sniffing around, The Wall Street Journal is now claiming that Microsoft is about to break open the Redmond money bin and fork over $7 billion $8.5 billion for Skype. It could be announced as soon as tomorrow.
A deal represents Microsoft's most aggressive move yet to play in the increasingly-converged worlds of communication, information and entertainment. Skype connects more than 663 million users around the world via Internet-based telephony and video, making it a key technology platform for a new generation of Web-savvy consumers. During 2010, those users made 207 billion minutes of voice and voice video calls over Skype.
Obviously, Skype is a hugely popular app not just on desktops but on mobile devices, including the iPhone, iPad, and iPod touch. Would Microsoft keep it free and freely available across platform? Would they try to build it into Windows and Windows Phone? Would they simply not be able to support it and just let it wither and die the way so many great technologies do once acquired by a gigantic corporation?
Will we have to stop saying "let's all jump on Skype" and start saying "let's all jump on Microsoft P2P VoIP client for Windows Live Communications 7 Home and Student Edition"?
UPDATE: Kara Swisher of Boom Town says the deal is confirmed. [AllThingsD]
UPDATE 2: The deal is confirmed now as well as the amount $8.5 billion in cash. Microsoft PR Skype PR
“Skype is a phenomenal service that is loved by millions of people around the world,” said Microsoft CEO Steve Ballmer. “Together we will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world.”
Skype will become a new business division within Microsoft, and Skype CEO Tony Bates will assume the title of president of the Microsoft Skype Division, reporting directly to Ballmer.
“Microsoft and Skype share the vision of bringing software innovation and products to our customers,” said Tony Bates. “Together, we will be able to accelerate Skype's plans to extend our global community and introduce new ways for everyone to communicate and collaborate,” Bates said.
“Tony Bates has a great track record as a leader and will strengthen the Microsoft management team. I’m looking forward to Skype’s talented global workforce bringing its insights, ideas and experience to Microsoft,” Ballmer said.
There are 58 comments. Add yours.
Wow skype will make record sales with this one lol. Over priced I say
So G.A.Y.!!!!!!!!!!!!!!
Theyre just gonna build it into Windows Live Messenger, which is 1000x gayer than skype!
NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
+1
+2
I was literally about to type in the exact same words before I saw ur comment!
i use skype for iphone and linux, if MS decided to buy skype, who knows what they would do (the linux verson.......i worry the most)
So if Apple were to acquire Skype that would somehow be a great move huh?
That would be even gayer as they would build it into ichat or facetime...
Oh crap, there goes the neighborhood
+1
Well, at least it's not Facebook.
If they're smart they'd just buy it and keep it running the same way.
I dont see how that would be smart. Skype posted a loss, again, last quarter, and last year. They also have $686m in long term debt. This is not a financially viable company
Nobody will be able to figure out how to use it after Microsoft gets their hands on it. And they'll probably make the 'Decline' button a big red X at the top right corner, that when tapped, will shut off your phone completely. :lol:
Luckily, my Skype subscription just expired a few days ago and I didn't renew. If this happens I can safely delete the apps off my iDevices and Macs, because I'll never use Skype again.
This saddens me
Bet on this becoming a "Windows Only" product.
Skype. The new BSOD.
Even if Microsoft were to buy Skype... at least in the near term they could ill affort to stop servicing iPhone App customers. I think it would be a good move for Microsoft to buy and enhance the Skype brand but I would not quickly integrate it into Microsoft products.
You are SO right about the branding: Microsoft is sure to come up with something hilarious.
Maybe this news explains why Skype 5 for Mac is such a dog? The Windows programmers are already in there...
I have used Skype and I have used Microsoft products. Microsoft has never done a creative thing in its entire existence. It does not create, it purchases. Skype has meaning to many and in the long run this purchase may not be a good thing. For companies like microsoft it is all about control.
In a recent rant on some forum or another I wrote that Microsoft is the loser in the smart phone and tablet arena and that the smart thing for them to do would be to develop "apps" for the leading operating systems. This does that very quickly.
Good news for eBay they break even I guess.
"Will we have to stop saying “let’s all jump on Skype” and start saying “let’s all jump on Microsoft P2P VoIP client for Windows Live Communications 7 Home and Student Edition”?"
This one had me literally LOLing and almost literally ROFLing. Too true!
Skype is already way too corporate for me. Apple OR Microsoft owning it is bad for customers- good for shareholders.
Ironic that you're on a site dedicated to the products of one of the most valuable corporations on the planet though.
LOL +1
What you dont understand is that fan boys dont consider Apple corporate
Whatever, microsoft and there products are nothing but crap anyway
Abort? Redial? Ignore?
GOOD! Perhaps we might finally see some updates for Skype on IOS and even an iPad version which Skype have been so lazily neglecting to make.
Microsoft hasn't updated their live messenger iPhone app for retina display yet, and you expect them to update more often than skype?? Lmao
Which is worse than Skype's decision to charge for using their service over 3G? That was popular.
They might build it into the Windows Phone OS like what they did facebook and twitter. I hope they won't make it exclusive for their platfoms though, else I fear for the iPhone app
I use Skype, but not as much as I could, primarily because on their own, they never provided the updates needed or promised. With Microsoft, perhaps some of those will finally come to be. Skype could become the world standard calling application, just as MS Office has become a world wide standard. (Sure there are competitors, maybe even better, but none more used).
R.I.P Skype! thx for everything!
.............ew.............(slowly crawls under the bed and into the fetal position)
Everything Microsoft touches turns into crap.
Skype. R.I.P.
Oh god no! The last thing anyone wants is Microsoft to have a monopoly on the internet video communications business. I stopped using MSN for a reason, because there are much better services around, like Facebook and Skype. I hope this is not true but it looks like it's the truth. Noooooooooooo!
I always shake my head at fanboy comments. Microsoft is not crap and Apple is not perfect. Both are companies with pluses and minuses competing to get your money. I don't get why so many people like to pick sides as if it really matters. There was a psychological study done before where people gave people red and blue shirts at random and then those people associate themselves with one. It's sad but guess so many people feel like they have to be on a team and choose sides no matter how irrational it may be.
Back to topic, I rather Skype stay independent but Microsoft was best choice out of possibilities. MUCH better than Facebook or Google due to privacy concerns and selling of information.
Team Edward or Team Jacob
+2
James,
Hate to bust your bubble but I own only two Apple products--iphone 4 and ipod. I'm by no means an Apple fanboy but I can recognize when Microsoft has problems turning out good products or turns a good thing into dust. It will be no different if they do in fact purchase Skype.
"Will we have to stop saying “let’s all jump on Skype” and start saying “let’s all jump on Microsoft P2P VoIP client for Windows Live Communications 7 Home and Student Edition”?"
Yeah, because the first thing Microsoft wants to do is through out all the brand capital that comes along with 'Skype'.
Old Microsoft joke is old.
*throw
Agreed
"Will we have to stop saying “let’s all jump on Skype” and start saying “let’s all jump on Microsoft P2P VoIP client for Windows Live Communications 7 Home and Student Edition”?"
Bazinga!
People still use Skype?
I know right? It was just as shocking as when I found out people still used Macs!
Me senses some sarcasm... :)
When it first came out a lot of people I knew used it, but the use faded dramatically. Can't even remember the last time I answered a Skype call.
Microsoft hasn’t updated their live messenger iPhone app for retina display yet, and you expect them to update more often than skype?? Lmao
this is a sad sad day... am I the only one that wanted facebook to buy it, so they could embed video into their chat platform?
...yes.
Get real
Ah, touché, my friend. The currently decommissioned Mighty Mouse did have one large clickable surface, however, it could be programmed to sense a right click. Also there are two side buttons which are used in Exposé. What say you about Magic Mouse, or Trackpad?
I'm not really anti-mac or anti one button mouse. It's that I really don't like Fartlane and his attitude. In real life he's probably a worthless employee and a drain on society.
This deal makes little sense. Prolly what happened was the telecos promised to pedal more win phones big time if Mr. Softee promises to take put skype on a leash for them.
Ma bell and her ugly step children can't been seen purchasing it directly. Msft is notorious for these type of coordinated dirty deals just ask intel and dell.