Skype sold to Microsoft for $8.5 billion in cash. The reasons as to why Skype did that are unclear. Some sources say that Skype’s revenue stopped making progress. Skype has been wanting to sell for quite some time. Facebook and Google were amongst the potential buyers of Skype.
The fact that Microsoft owns Skype now may be a potential for future improvements for Skype as Microsoft has accomplished various innovations in the past; such as Microsoft Office, Hotmail, Vista, xBox360, Windows 7. Thus, it may improve Skype to a more advanced program.
The benefits for Microsoft include: (1) Skype’s features (voice, video, sharing capabilities) improves Microsoft’s position in the enterprise collaboration market, (2) carriers that want to partner with Skype have to partner with Microsoft, (3) provides an application/service that may be used in future versions of Windows Mobile operating systems, (4) creates competition between Windows Phone 7 (Mobile OS) & Nokia and Google Voice or Apple.
Hence, Microsoft has high potentials to growth within its company and Skype on the other hand has potentials for improvements of its program in the long run.
MLA
“EU Approves Microsoft-Skype Deal | News.com.au.” News.com.au | News Online from Australia and the World | NewsComAu. Web. 09 Oct. 2011. <http://www.news.com.au/business/eu-approves-microsoft-skype-deal/story-e6frfm1i-1226161722866?from=public_rss>.
Malik, Om. “Why Microsoft Is Buying Skype for $8.5 Billion — Tech News and Analysis.” GigaOM — Tech News, Analysis and Trends. Web. 09 Oct. 2011. <http://gigaom.com/2011/05/09/why-microsoft-is-buying-skype-for-8-billion/>.