Microsoft acquires Skype for $8.5 billion

By • May 13th, 2011 • Category: Blog

Microsoft has acquired VoIP giant Skype for $8.5 billion from the investment group led by Silver Lake Holdings. It seems that Skype will operate as its own division within Microsoft’s company structure, and will maintain offices in Luxembourg and Silicon Valley.

This is a bold move from Microsoft to reassert its position in the Internet voice and video communications arena. The combination of Skype’s expertise in Internet VoIP and video calling with Microsoft’s Windows Mobile phones and Kinect could lead to some very intriguing products in the future. For instance, Skype could power video calling and Internet VoIP on Windows Mobile phones and Kinect devices. The implementation of Skype onto Windows Mobile could be the jump start that Microsoft needs in order to gain some market share back in the smartphone market. Also, marrying Skype with Xbox Kinect could also be an intriguing prospect of turning Kinect into an enterprise device. Combining Skype’s technology with the Kinect camera could turn it into a powerful videoconferencing tool for both businesses and consumers. Despite much criticism of Microsoft, we see a real upside to Microsoft’s acquisition of Skype and it will definitely help re-launch Microsoft in the voice and wireless markets.

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