Article

2011-05-11 Science & Technology

And they're over-paying by a factor of ten...

[Dawn]US software giant Microsoft is reportedly poised to announce a deal to buy Internet telephony pioneer Skype as it battles to stay relevant in an online world dominated by Google and Apple.

Technology website All Things Digital cited unnamed sources as saying Microsoft would reveal the acquisition early Tuesday.

Microsoft chief executive Steve Ballmer reportedly championed the deal, which was estimated to have a price tag of dollar 8.5 billion in what would be the decades-old technology company's most expensive acquisition to date.

Microsoft did not return an AFP request for comment.

Skype was launched in 2003 by Estonian software developers who were part of the group that created peer-to-peer file-sharing service Kazaa.

Millions of people use Skype to make low cost or free phone calls over the Internet using their computers or smartphones.

Buying Skype could be a way for Microsoft to shed some of its business software image and gain momentum in a hot smartphone market at a time when Internet lifestyles are going mobile.

Skype in January closed a deal to buy Qik, a Caliphornia startup that specializes in allowing people to use smartphones to stream video to Internet-linked friends in real time.

The acquisition came amid surging popularity of video chat using smartphones, tablets and desktop computers.

Skype handled 24.7 per cent of all minutes spent on international phone calls last year and 40 per cent of calls between Skype users were video, Skype chief executive Tony Bates said while announcing the Qik takeover.

Bates said Skype was also continuing its push into living rooms, expanding a line of televisions embedded with its Internet telephony service and even infusing the software in a Blu-ray player made by Panasonic.

Online auction giant eBay in 2009 sold most of its stake in Skype to an investment group that includes the two founders of the Web communications company. That deal valued Skype at dollar 2.75 billion.

Posted by Fred 2011-05-11 00:00|| || Front Page|| [11131 views ] Top

#1 An interesting move for Microsoft. Online I spend money with Amazon, iTunes, eBay, and Netflix. But not much else. But I did buy a small amount of Skype credit to save on cellphone fees... until Google announced a similar service that would be free for at least a year. Since then I've been using nothing but Gmail phone to do my internet telephony. I wonder what Microsoft thinks they can do to make money off virtually the same service Google is giving away for free.

Skype has the advantage of video, though, so maybe Microsoft plans to work the business teleconferencing angle.

Posted by Scooter McGruder 2011-05-11 00:51|| 2011-05-11 00:51|| Front Page Top

#2 FYI WMF > US, FOREIGN MEDIAS CLAIM THAT OSAMA BIN LADEN'S FAMILY [Clan] OWN LARGE STAKES IN THE MICROSOFT + BOEING AIRCRAFT US COMPANIES. BIN LADEN FAMILY SECOND IN THE ARAB-MUSLIM WORLD ONLY TO THE SAUDI ROYAL FAMILY IN TERMS OF ECONOMIC WEALTH.

Many Perts consider the Saudi Royals + Osama'c Clan as effectively one + the same in terms of mutual support + sharing in Econ, Govt. Policy activities.

Posted by JosephMendiola 2011-05-11 01:02|| 2011-05-11 01:02|| Front Page Top

#3 MS office apps revenues are about to implode as people discover Google docs.

My daughter was just saying yesterday, how great it is.

The IT business has a history of companies wildly overpaying for technologies they didn't understand, usually as a prelude to going bust.

Posted by phil_b 2011-05-11 01:53|| 2011-05-11 01:53|| Front Page Top

#4 Companies like MS are sitting on a lot of capital they won't invest in new work because of the irrational unconstrained autocracy in the Beltway. However, leaving it around attracts attention, so its better to do stupid stuff like this with the money than just allow the crooks in Washington to vote/appropriate it to themselves for bread and games.

Posted by Procopius2k 2011-05-11 08:05|| 2011-05-11 08:05|| Front Page Top

#5 'Free' services from Google aren't free - you pay for it with their compromise of your privacy and information.

Posted by lotp 2011-05-11 08:37|| 2011-05-11 08:37|| Front Page Top

#6 usually as a prelude to going bust

Microsoft is 'too big to fail.' If it gets in trouble it will be bailed out and become a part of the (national socialist) Federal government.

Posted by Glenmore 2011-05-11 08:43|| 2011-05-11 08:43|| Front Page Top

#7 Sounds like MS isn't going after the consumer market but the business market who might not want (or might not be allowed by law) to have their docs accessable from Google or any other outside entity without strict controls.

And if they integrate it with Office and Outlook (and sharepoint).

Corprate workers are often told nowdays to be careful what they say in email or chat (and perhaps even in voice) - don't say anything you don't want splashed over the New York Times headline. Not to necessarily hide anything - but to avoid embarassment.

Posted by CrazyFool 2011-05-11 09:14|| 2011-05-11 09:14|| Front Page Top

#8 Everytime I say 'Obama' on the phone, I hear a 'click' on the line....

Posted by Anguper Hupomosing9418 2011-05-11 11:41|| 2011-05-11 11:41|| Front Page Top

#9 If it's made by Microsoft, and it's not a vacuum cleaner, then it will suck. So long, Skype.

Posted by Iblis 2011-05-11 11:47|| 2011-05-11 11:47|| Front Page Top

#10 #5 'Free' services from Google aren't free - you pay for it with their compromise of your privacy and information.

Well said Lotp. It depends if you value your information over electronic media or not. I do, so I don't use Google. Though Android phones are mighty tempting...

Posted by Charles 2011-05-11 15:32|| 2011-05-11 15:32|| Front Page Top

#11 Remember that Google has a very interesting definition of the term do no evil.

Posted by CrazyFool 2011-05-11 16:12|| 2011-05-11 16:12|| Front Page Top

#12 Chromebooks become available next month and I will be buying one.

Although I am no fan of Googles politics.

Posted by phil_b 2011-05-11 20:19|| 2011-05-11 20:19|| Front Page Top

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