VOIP: Microsoft acquires Skype for more than $7 billion? Update: Official

Microsoft eyeing SkypeThis is undoubtedly most aggressive move by Microsoft in the world of communication, information and entertainment. Microsoft is eyeing a deal to acquire Skype for more than $7 billion.

As Facebook and Google were rumored to be negotiating to acquire Skype, Microsoft enters as a new contender. Microsoft is all set to buy Skype for a whopping $7 billion or more (though the deal is yet to be officially announced). As the value is more than $7 billion, Skype deal would be the biggest in history of Microsoft.

Skype is a service that connects over 600 million users around the world, making it a important VOIP player. Microsoft doesn’t have a competing product and it surely fills a gap in its portfolio with Skype.

Microsoft has plenty to do with Skype, be it a deep integration with its Live services (integrated with chat?) or being the default video calling service for Windows Phone 7, the massive 600 million+ user-base of Skype is what Microsoft wants to boost its presence.

The deal value of $7 billion or $8.5b as it is rumored is several folds of the company valuation in 2009. eBay had its hands burnt and had to return Skype to its original founders and a group of investors. Hope Ballmer & co. have done their research on the IPs involved.

Update: The is now official with the buyout price of $8.5 billion. Skype would become a business division inside Microsoft.

Source: WSJ

Want to stay up-to-date? Subscribe to OnlyGizmos by Email!