Microsoft Buys Skype for $8.5 Billion
Microsoft Acquires Skype
In its biggest-ever acquisition, Microsoft is buying Skype. Microsoft is paying $8.5 billion in cash to an investment group led by Silver Lake, which bought Skype from ebay for $2 billion in 2009. Microsoft is hoping that the steep price will get them a product that can compete with Google and iOS in terms of live chat.
Soon Skype will be intergrated with Microsoft products ranging from Outlook to Xbox Kinect. This means video chat, as opposed to Star Wars-style holographic communication.
A Microsoft statement read, "The combination will extend Skype's world-class brand and the reach of its networked platform, while enhancing Microsoft's existing portfolio of real-time communications products and services." Actually, the first hurdle will be convincing users that MS won't end up ruining Skype.
Skype has around 660 million registered users, around 25% of whom are active.