Microsoft set to buy Skype for $8.5bn in biggest deal in history

Daily Mail 05/10/2011 18:45

Microsoft is on the verge of buying Skype for $8.5billion - despite the Internet phone service making a loss of $7million last year. The deal would be the biggest in the 36-year history of the world's largest software company. Microsoft has trailed Apple and Google in the mobile and Internet arenas.

Despite doubling sales and profit in the last eight years, Microsoft's stock has mostly languished at the same level.

It has left investors worried about its ability to counter new rivals or adapt to new ways of computing.

For users the deal means Microsoft will integrate Skype into its array of corporate and home entertainment products.

Skype will support Xbox and Kinect, the company said, which could make for an interactive gaming experience that would link up players across the world.

But it could also be beneficial to the whole family for home schooling, one-on-one training and even patient care delivered remotely.

Skype is also multi-platform, meaning it can reach into the world of Apple and can be paired with Windows Phone 7.

It could also get Microsoft's Bing search engine in front of millions more people.

Microsoft will connect Skype users with Lync, Outlook, Xbox Live and other communities but will also continue to 'invest in and support Skype clients on non-Microsoft platforms.'

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