MICROSOFT AQUIRES SKYPE

Microsoft is to buy internet phone service “Skype” for a reported $8.5 billion dollars in what would be the biggest acquisition in the history of the company. Microsoft outbid Google and facebook.

Skype allows users to talk and use video conferencing for free among users and to call other phones for a fee. Skype has over 600 million registered users with over 124 million active users each month.

This move will help enable Microsoft to connect its Lync platform with Skype to provide enterprise grade chat, audio, video and web conferencing facilities to users and will also be linked to Xbox and Kinect, which would connect players from around the world.

Skype was formed in 2003 and sold to E bay in 2005 for $3.1 billion and in 2009 e bay sold 70% of its holding to a consortium led by private equity firm Silverlake for $2 billion.

Microsoft was under pressure to compete with Apple’s Face Time video calling facility and Google Talk, which are gaining popularity. Microsoft now possesses multi platform enabled Skype which has applications for Linux, Blackberry and Android, enabling them to support Skype on non Microsoft platforms.