Microsoft buys Skype

0 Comments By sayoob
Posted on 16 May 2011 at 1:06pm

This post is also available in: Spanish

Microsoft Skype

Microsoft Skype

In purchasing Skype for $8.5 billion, Microsoft has gotten the tech and business worlds talking—namely wondering if the acquisition was a good investment, or, the last gasp of an at-one-time industry giant that is trying to regain its mojo.

Many have noted that while Skype has 663 million users, only 8.8 million are paying customers. The accepted thinking is that Microsoft is looking to make a dent in the crowded mobile communication market, in which Apple and Google dominate. However, if Microsoft is able to integrate video chat into other sectors like the XBox and business software, the purchase could pay off. Yet with Skype having lost money for four out of the past five years, Microsoft may have its hands full trying to turn the struggling video chat company around.

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