Breaking News: Microsoft near deal to buy Skype

Microsoft Corp. is nearing a deal to buy the popular Internet telephone service Skype in what could be the biggest deal in the software maker’s 36-year history, according to a published report. If Microsoft does buy Skype, The Wall Street Journal reported that the deal could be valued at $8.5 billion, including assumed debt. At that price, a Skype takeover would top Microsoft’s biggest previous acquisition – a $6 billion purchase of the online ad service aQuantive in 2007.

Citing unnamed people familiar with the matter, the Journal said Microsoft could announce an agreement with Skype as early as Tuesday. The newspaper reported the same people also cautioned the talks could fall apart. Spokesmen for Microsoft and Skype declined comment on the report late Monday.

Buying Skype would give Microsoft a potentially valuable communications tool as it tries to make a bigger splash on the Internet and become a bigger force in the increasingly important smartphone market. Skype boasts about 663 million users worldwide who make voice and video calls over the Internet. The amount of calling on Skype’s network totaled 207 billion minutes last year, according to regulatory documents.

Most people use Skype’s free calling services, a penchant that has made it difficult for the service to make money since entrepreneurs Niklas Zennstrom and Janus Friis started the Luxembourg company in 2003.

via Report: Microsoft near deal to buy Skype.

This entry was posted in Technology. Bookmark the permalink.

One Response to Breaking News: Microsoft near deal to buy Skype

  1. Steve B says:

    A very interesting development. eBay had hoped that they could integrate Skype with their auction technology, but this never came to fruition. Although eBay still remain as a major investor in Skype, they let their acquisition go a few years ago. You have to wonder if Skype would continue in its current guise or if it would be integrated into Microsoft’s Live offering as a replacement/addition to Messenger. A situation to keep a close eye on.

    Microsoft are going through an interesting time at the moment. With the advent of new platforms, such as tablets, smartphones, etc. And the advent of new operating systems such as iOS, Android and the like, MS are seeing a reduction in their market exposure and share. They have recently announced that the next iteration of Windows will not only run on the Intel platform but will be compatible with ARM’s chip offerings. This is a major step for MS who have always been allied to Intel in the past.

Comments are closed.