Microsoft-Skype: Internet Innovation

After much deliberation, the European Commission approved Microsoft’s $8.5 billion acquisition of Internet calling innovator, Skype.  Although Microsoft’s stock prices have been slowly declining, along with just about everything else, this opportunity would allow Microsoft to take advantage of Skype’s soaring popularity to boost its stock prices and regain its reputation as a market innovator and leader.  However, Microsoft needs to be careful and avoid making drastic changes to an already popular product that might either prevent new customers from coming or push away the millions of existing users.  When Google bought the popular site YouTube 2006, it decided to make changes to the site to help business, but those changes actually pushed existing and potential customers away from the site.  Now, that’s not to say that Microsoft shouldn’t work to build Skype into an extremely lucrative subsidiary, but rather that it must be careful in its decisions about the website and avoid any tremendous reformatting that would impede user experience and force a decrease in customers.

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