A Major breakthrough - Microsoft acquired Skype in $8.5 billion

Skype is a software application that allows users to make voice, video calls and chats over the Internet. Skype-to-Skype calls, One-to-one video calls, Instant messaging, File-sharing are free services of Skype. Skype's vision of making the world a better, more connected place is almost achieved with 663 million registered users, but still miles to go.

Skype has lots of features such as conference calls, Skype To Go numbers, Online Numbers, Voicemail, Call forwarding, Call transfer, Caller ID, Screen sharing, Instant messaging, Send files, SMS, Skype Access, Facebook News Feed. Skype has become an inseparable part of our day to day life. Skype is available on our computer, mobile and TV too. Recently Skype unveils group video calling feature through which we catch up multiple people face to face at the same time.

Journey of Skype:-

Birth of skype:- Skype was founded by Niklas Zennström from Sweden and Janus Friis from Denmark in 2003. Initially it was named “Skyper”, but finally last letter “r” was dropped and named as “Skype”.

eBay Deal:- eBay purchased Sype in October 2005 just after it was banned in South China, in $3.1 billion. In charge of eBay Skype did very well. In 2005 December they introduced video telephony. After that, in 2006 registered user reached 100 million.

Silver Lake Deal:- In 2009 eBay sold Skype for $1.2 billion to a private investment group(Silver Lake). Skype was booming under the maintenance of private investors group.

$8.5 billion Cash Deal:- 10th May 2011 was the day when Microsoft announced the deal of $8.5 billion for acquiring Skype. It was the highest price paid by Microsoft in its 36 years of history. It was the cash deal as reported by various sources. It is said that Microsoft snatched the deal from Google and Facebook's hands.

Microsoft said in a statement that Skype will be integrated into Microsoft devices and systems such as Xbox and Kinect, Xbox Live, the Windows Phone, Lync and Outlook.

Benefits of deal for Microsoft -

1.      Microsoft enterprise collaboration market will be boost by Skype.

2.      Microsoft merges the functionality and features of Skype with Mobile Operating System.

3.      Enhance Skype brand.

4.      Microsoft wants to connect Skype with Lync, Outlook, Xbox Live and many other communities.

5.      Skype will support Microsoft devices like windows devices, Xbox & Kinect.

Microsoft must have brainstormed and calculated all the ins and outs of the deal. Besides above discussed plans there must be other unfold points and benefits that Microsoft must have expected to extract from the deal. Bonding of both will results to various enhanced and feature-rich applications. We are just waiting for the sound of boom again.

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