Why did Microsoft buy Skype?

May 25, 2011 Comments Off on Why did Microsoft buy Skype? by

When Microsoft purchased SKYPE for $8.5bn many people questioned their acumen. Some saw it as a gasp for attention and likened it to an old geezer going out and buying a sports car to bolster his image.

However, I think it was a smart an innovative move. It made you look, and it certainly got a few people reaching for their Skype phones to gossip about the acquisition. Skype is the world’s largest phone company for international voice calls.

Of course, some of us got a little nervous because we know that Skype is FREE and Microsoft dosen’t have that word in their vocabulary. But, maybe they are learning a thing or two from the new kids on the block.

The fact that Skype went for such a huge sum was perplexing because the company was not a big earner, at least not for eBay. But that’s what endeared millions of satisfied users to Skype.

Microsoft plan

Microsoft have a canny plan. They must have …. You don’t pay well over the odds for a company just to flex your financial muscles. They still have some clever people working for them, they haven’t all jumped ship. The challenge now is for Microsoft to use Skype to make voice/video work seamlessly for the 660 million Skype users.

The Other big dogs

The other big internet telecoms giants, Apple, Facebook, Google et al, have had to ditch or at least shelve their voip plans because of Microsoft’s bold venture. It could cost them millions as they now have to scrap any immediate plans to voip up their portfolio of communications products.

The future is bright for Skype and up to 1 billion users if Microsoft can improve it and unlock its vast potential. Let’s hope that they don’t change the way we feel about Skype.

Business, Technology

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Editor for Leedsway
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