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Category: Technology

Microsoft competes with Apple and Google by buying Skype

Written on May 11, 2011 by R. Cruise

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Microsoft is breaking a record by buying Skype for over $8 billion – the biggest business venture ever in the software manufacturer’s history.

giant announced Tuesday that it is buying Internet telephone company for $8.5 billion cash. The company has just signed the deal the night of May 9th, though the price was finalized on April 18th, sources say.

Although this move by Microsoft, said to be the biggest deal ever the company’s about to make it 36 years, would not affect its finances entirely, buying Skype is apparently an action to “make clear Microsoft’s intention to compete with rivals such as Inc and Inc.,” reports say.

Furthermore, owning Skype will give Microsoft access to a user base of over 170 million people from all over the globe who ‘Skype’ every month.

According to a report by CBS San Francisco, Microsoft sees to converge Skype’s functions to its Xbox game console, Outlook email program and Windows smartphones. In addition to these platforms’ options for Internet calling, the addition of Skype users would widen their reach, making them more useful.

Skype was previously owned by eBay, before the online market sold 70 percent of its stake to a number of private equity firms like Silver Lake Partners and Andreessen Horowitz back in 2009.

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