Skip to main content

Microsoft buys Skype for $8.5 billion

microsoft-buys-skype
Image used with permission by copyright holder

Rumors may have pointed toward a Google or Facebook buyout, but Microsoft announced today that it has definitively agreed to purchase Skype for $8.5 billion in cash (we learned about this last night). The buyout has been approved by both companies. The Redmond software giant claims that it will continue to support Skype on non-Microsoft platforms, but is quick to point out that “Microsoft devices like Xbox and Kinect, Windows Phone, and a variety of Windows devices will connect Skype users with Lync, Outlook, Xbox Live, and other communities.

“Skype is a phenomenal service that is loved by millions of people around the world,” said Microsoft CEO Steve Ballmer. “Together we will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world.”

Recommended Videos

According to a press release, Microsoft will create a new division specifically for Skype with current Skype CEO Tony Bates assuming the title of president of the Microsoft Skype Division. He will report directly to Microsoft CEO Steve Ballmer. “Tony Bates has a great track record as a leader and will strengthen the Microsoft management team. I’m looking forward to Skype’s talented global workforce bringing its insights, ideas and experience to Microsoft,” Ballmer said.

This isn’t the first time Skype was purchased by a large company. In 2005, eBay bought Skype, but lacked a vision or plan to implement or do anything with the service. Much like the millions who waste money on eBay, the Web auction site got a serious case of buyer’s remorse. After letting it sit and whither for four years, eBay finally sold Skype to an investor group led by Silver Lake in 2009. It went for $2 billion. Since that time, the service has made some strides, obtaining IP for its technology and increasing its usage. More than 170 million users are now on Skype using 207 billion minutes of voice and video last year alone.

We aren’t sure why Microsoft paid so much ($8.5 billion), but it may have had to outbid competitors. Luckily, Microsoft has a $40 billion cash warchest for just these types of purchases. Skype’s technology could easily enhance almost every major service and product Microsoft offers, especially Windows Phone. Deep integration with Windows Phone could give Microsoft a leg up on the competition as cellular calls slowly move away from voice networks and onto wireless carrier data networks.

What do you think? Will this hurt Skype on Android and other platforms?

Jeffrey Van Camp
Former Digital Trends Contributor
As DT's Deputy Editor, Jeff helps oversee editorial operations at Digital Trends. Previously, he ran the site's…
Spotify vs. Pandora: which streaming service should you choose?
spotify vs pandora on iphone

Let's settle a musical debate: which music streaming platform should you use: Spotify or Pandora?

Both services have their unique strengths and weaknesses. Spotify boasts a more extensive music catalog, robust social features for sharing and discovering music with friends, and a more polished user experience across devices.

Read more
Ryzen AI nearly hits 60 fps in Black Myth: Wukong, but it’s not that simple
OneXFly F1 Pro gamig handheld.

Although AMD APUs appear in some of the best gaming handhelds, the latest Strix Point chips are still hard to find in new releases. However, the new OneXFly F1 Pro gamin handheld is making its debut with the Ryzen AI HX 370 chip in tow, and according to a benchmark in Black Myth: Wukong, it managed to average an impressive 58 frames per second (fps) at a 15-watt thermal design power (TDP). That's an impressive result, but digging deeper reveals that AAA gaming on the go is still not without any sacrifice.

The OneXFly F1 Pro comes with the Ryzen AI HX 370, which sports a total of 12 cores -- four Zen 5 and eight Zen 5c -- as well as 24 threads. The maximum boost clock on the Zen 5 cores reaches 5.1GHz, but the smaller Zen 5c maxes out at 3.3GHz. The default TDP was rated at 28 watts, but it can be configured between 15W and 54W. For an APU, the AI HX 370 delivers solid graphics capabilities, as it's equipped with the AMD Radeon 890M. It also sports a 7-inch OLED screen with a refresh rate of 144Hz.

Read more
Best Buy laptop deals: Cheap laptops starting at $200
Apple M1 MacBook Air open on a desk with plants in the background.

Best Buy is one of the best retailers to shop if you're looking for some of today’s best laptop deals. Whether you need something high end or more entry-level, Best Buy likely has a laptop that’s perfectly priced for you The Best Buy laptop deals going on right now include Dell laptop deals, HP laptop deals, Lenovo laptop deals, and even MacBook deals. With so much to choose from we thought we’d narrow down all of the Best Buy deals worth taking a look at. Reading onward you’ll find all the details you need in order to save on a new laptop at Best Buy, and if you aren’t finding what you’re looking for you can find some laptop deals among the current Amazon deals and Walmart deals as well.
HP 14-inch laptop — $200 $250 20% off

The HP 14-inch laptop is a sleek and fun computing device. It's a great option for anyone searching the best laptops for high school students or the best laptops for college. It has an Intel Pentium processor and 4GB of system RAM that combine to push through homework assignments, work presentations, and hours upon hours of binge watching. The 14-inch screen sports HD resolution and makes this HP laptop a great way to enjoy movies, photos, and other digital content. The HP 14-inch laptop is able to reach up to 14 hours of battery life on a single charge, making it a great all-day option for people who like to do their work on the go.

Read more