|
One of the largest and most interesting of the social media start-ups of late has definitely been Skype. The video messaging system, which allows users to video message friends and families long distance, and even routes phone calls through the internet for a nominal fee has been a huge success. With the advent of webcams coming standard on most laptops and the world looking for even more ways to connect, Skype has become a major asset in the media industry.
That, I suppose, is why there was such competition to buy them, but in the end Microsoft won out. The deal, done through investor group Silver Lake, reportedly cost Microsoft $8.5 billion – in cash. Microsoft’s press release from their news site asserts that the deal will help out both companies, bringing a wider audience to the Skype market and boosting Microsoft’s communications portfolio.
The press release goes on to highlight that Skype will now be connected with Microsoft’s phone systems as well as with Xbox Live and Kinect, popular gaming devices. Therefore, Skype now has more avenues to connect via messaging, and Microsoft can add them to their long list of successes.
Skype, which was founded in 2003, was originally bought by eBay in 2005 and then bought by Silver Lake in 2009. Since that acquisition, Skype has shown vast improvement and reach over its now global market, making it a viable option for Microsoft to buy.
Of course, these types of deals take time and there are many more hoops the deal must jump through in order to be legitimate. Despite this, Microsoft’s press release states that they hope the deal will be settled by the end of this year.
