For Microsoft, Skype Opens Vast New Market in Telecom
Posted in: Miscellaneous at 11/05/2011 17:45
Microsoft has peered into the future, and placed a bet that people the world over want to stay in touch with someone anytime and anywhere -- preferably at no cost.
In agreeing Tuesday to pay $8.5 billion to buy Skype, the pioneer in Internet phone calls, Microsoft is embracing a technology that is transforming the way people communicate at home and at work. And by stitching Skype technology into Microsoft products, used by hundreds of millions of people, the software giant could hasten the mainstream adoption of video communications, especially in businesses.
Microsoft, although rich and powerful, lags in new fields like smartphone software. Skype could help it better compete with the new giants of technology, like Google and Apple.
To read this New York Times report in full, see:
Microsoft buys Skype for $8.5bn in its biggest purchase and gamble yet
Microsoft's acquisition of Skype, its biggest ever, is an $8.5bn (£5bn) gamble to try to catch up with Apple and Google.
The software company, once so dominant, has been left behind by its more fleet-footed competitors as the pace of technological change - especially in mobile telecoms - has outstripped its ability to innovate.
Microsoft Dials Up Change: CEO Ballmer Defends Hefty $8.5 Billion Price Tag for Internet-Phone Firm Skype
Microsoft Corp. racked up a whopping $8.5 billion phone bill to buy Skype SARL even though there were no signs of other serious bidders for the provider of free online video and voice chats, as the software giant moved aggressively to ramp up its growth.
Microsoft made an unsolicited bid for the Internet company last month and clinched its deal late Monday, nixing a planned Skype public offering and short-circuiting any talks with competitors such as Google Inc. and Facebook Inc.