Skype in Possession of Microsoft

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Oct 19, 2011, 10:07 ET

HONG KONG, Oct 19, 2011 /PRNewswire/ -- (http://www.myprgenie.com) -- Skype will now operate as an independent business unit at Microsoft. The possession cost for Microsoft was $8.5 billion dollar, and until now, it is Microsoft's largest acquisition. There were rumors regarding the acquisition of Skype, sources named Google and Facebook along with Microsoft to be in the run of acquiring the internet telephone service.

Though it was initially spread that Bill Gates, the chairman of Microsoft is not happy with this deal, he cleared the misunderstanding. The chairman of Microsoft supported his company to go ahead with the acquisition of Skype. He plans to improve the concept of video conferencing and according to him, it is a good deal for both Microsoft and Skype. All in all, the deal with benefit not only both the entities, but also its users.

Skype was founded in 2003, and later acquired by eBay in 2005 for $2.6 billion dollars. But the combination did not work out well for eBay and the experiment failed. eBay had tried promoting the conversation of buyers and sellers on the auction site, which didn't succeed. They later sold Skype to a group of technology investors. With a failed experiment in its budding years, Skype was still successful in attaining a large user base. The reason for the popularity of Skype and increasing profits was its ability to connect people throughout the world. Skype has become one of the largest mediums all over the world to communicate, not just for personal use, but for professional use as well.

Microsoft will not disconnect Skype from its other clients; in fact their chairman informed that they plan to support Skype in its other deals. They also plan to invest in projects of Skype which are not Microsoft- related. Skype users will be connected to Xbox live, Lync, Outlook and other communities through Microsoft. Microsoft also plans to introduce Skype in its Windows Phone Devices.

The division of Skype, which will now be a part of Microsoft, is going to be headed by Tony Bates the CEO of Skype. Bates will report to Microsoft CEO Steve Ballmer directly. Skype's CEO Bates said it is a huge leap forward in Skype's mission to be the choice of millions for communicating. The plan is to accelerate communication at social, mobile and video levels. The future will define whether the new owner of Skype proves to be a leap forward or backward.

For more information visit: http://www.newspanel.co.uk/technology/skype-in-possession-of-microsoft/1783/

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SOURCE Newspanel