Digital Marketing News – Microsoft Closes Skype Deal

 

Microsoft has navigated its final hurdle this week in its acquisition of Skype when it was informed that the European Comission had approved the £5.5billion proposal.

The approval comes after the deal already received the thumbs up from the US and paves the way now for Microsoft to bring Skype in as a division of the Microsoft Corp.

Skype will retain its current CEO, Tony Bates, who will head up the new division under the leadership of Steve Ballmer.

Bringing the two companies together could be a highly beneficial partnership for both organisations. Microsoft has struggled to compete in the online market against companies like Google and Facebook, and Skype has struggled to step up its game and boost its user base.

Having Microsoft’s resources available for investment will give Skype a real opportunity to branch out and begin realising its goal of reaching 1 billion users. Microsoft will use Skype to support its current devices like the Xbox and Windows Phone, making them stand out and able to compete against products like iPhone and Google’s Android.

The acquisition is the largest in Microsoft’s history, although not everyone is seeing it as a positive one. Those who remain cynical about the purchase believe that Microsoft will be in a hurry to push Skype out to as many users as possible, and sacrifice the quality of service in favour of a larger user base.

According to Microsoft’s press release it aims to integrate Skype across a wide range of its products and ‘accelerate its growth as a fundamental way people communicate online.’ A bold and ambitious statement but given Skype is already one of the top four most popular apps for most devices, it may not be far from reality.

Skype’s blog contains a great video clip of Tony Bates giving his view of the acquisition and a really nice infographic on the growth of video calling.

 

 

 

 

 

 

 

Editor: Smart move by Microsoft and as usual the anti-Microsoft brigade flood in with a conspiracy theory. I’m pretty sure that Microsoft are smart enough to focus on keeping the quality up.  The Skype acquisition is yet another deal that makes the XBox platform increasingly more than just a games platform. How many people take advantage of this will be interesting to see.

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