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Microsoft gets anti-trust approval for Skype buyout

It’s being reported that the US Federal Trade Commission has given the green light to Microsoft’s proposed buyout of Internet communications company Skype. The purchase was announced a few weeks ago and will cost the Redmond giant $8.5 billion.

This will make the Skype purchase the company’s largest ever acquisiton in cash terms and is interesting for several reasons. The first of these is that Skype doesn’t make any money as a company. Microsoft’s buyout will no doubt then have come as welcome news to Skype’s board.

microsoft skype

Also Microsoft now has a capable full suite of communications products with its Lync services. These include messaging, VoIP and Internet telephony products. Lync is a new product for Microsoft and some might question the timing of the Skype buyout when Lync is far enough through its development cycle to mean that features cannot now be changed.

A few people however have speculated that Microsoft’s primary reason for the Skype purchase is the company’s advertisers. Skype has 145 million people using it every month and has an equally impressive advertiser base that Microsoft would like access to.

Whatever the reasons for the purchase there can be little doubt that Internet telephony and other forms of Internet voice communication are a boom market that’s only ever going to get bigger. Buy buying Skype now, not only are Microsoft saving the expense of having to invest in their own communications datacentres, but they’re buying a successful brand at a time when there won’t be a huge premium to pay for it.

It remains to be seen how Google and Facebook, the biggest competitors to Microsoft in this arena will respond. So far neither have similar products of their own, however it can be reasonably predicted that they will want to add such services in the coming few years. The purchase of Skype would have fitted their own product portfolios just as well as it does with Microsoft.

Related Articles:

Will we Anti-Trust Microsoft in the Future?
Skype Acquisition Closed, Now Part Of Microsoft
Microsoft Buys Skype, What Does It Mean For You?
Skype Developer Tools Extended, Opens Skype App Directory
Kill Skype Home Removes The Skype Home Window

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About the Author:Mike Halsey is a Microsoft MVP for "Windows Expert". He is also the author of Troubleshooting Windows 7 Inside Out from Microsoft Press and the Windows 7 Power Users Guide, a how-to guide for non-technical Windows users on how to get the best out of Microsoft's new operating system, with step-by-step and quick guides. You can follow Mike on Facebook, Twitter or on his own website The Long Climb

Author: , Saturday June 18, 2011 -
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Responses so far:

  1. SFdude says:

    Martin and all,

    I heard that the latest version of SKYPE for Win,
    installs unwanted Nagware as an “Extra” called “EasyBits”
    ** even if the User refuses to install it **.

    (And then, it’s extremely hard to UNinstall this pesky “extra” to Skype).

    Have you heard how to avoid this involuntary install
    of this Skype extra?

    check this ref article link:
    “Skype Installs Unwanted Add-on Software (EasyBits) With Weekend Update”
    http://goo.gl/g0Fbs

    thanks!

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