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Microsoft buys Skype, adding Kinect and XBL support

Microsoft has announced that it will acquire the VOIP company Skype for $8.5 billion. Skype support is planned for Kinect and Windows Phone devices, plus continuing support for non-Microsoft platforms.
Steve Watts
13

Microsoft has announced that it will acquire the voice-over-IP company Skype for "$8.5 billion cash." The deal includes planned Skype support for a variety of Microsoft devices, including Kinect, and Windows Phones. Microsoft also says it will connect Skype users with established services like Outlook and Xbox Live.

The announcement also included word that Skype will still support non-Microsoft platforms. That means the iPhone, Mac OSX, and PlayStation Portable can still use Skype functionality and receive updates, despite belonging to Microsoft's two biggest competitors in the consumer devices and OS markets.

Under the new terms, Skype will become a business division within Microsoft, and CEO Tony Bates will become president of the Skype division. He'll report directly to Microsoft CEO Steve Ballmer.

"Skype is a phenomenal service that is loved by millions of people around the world," said Ballmer in the announcement. "Together we will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world."

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  • Shacknews legacy 10 years legacy 20 years
    reply
    May 10, 2011 8:30 AM

    Steve Watts posted a new article, Microsoft buys Skype, adding Kinect and XBL support.

    Microsoft has announced that it will acquire the VOIP company Skype for $8.5 billion. Skype support is planned for Kinect and Windows Phone devices, plus continuing support for non-Microsoft platforms.

    • mystifier legacy 10 years legacy 20 years
      reply
      May 10, 2011 8:34 AM

      that is pretty awesome, contemplating getting a kinect now.

      • InfernoAblaze legacy 10 years
        reply
        May 10, 2011 8:59 AM

        I use Skype to stay in touch with family and have a kinect so this is good news.

      • Rooster Cockburn legacy 10 years
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        May 10, 2011 9:37 AM

        It's going to be a LONG fucking time before Microsoft integrates Skype technology, especially into the 360. They don't even own the company yet.

      • dantastic legacy 10 years legacy 20 years
        reply
        May 10, 2011 9:54 AM

        im really looking forward to skyping with my nephews through the kinect. be cool not having to set up a laptop and get in the right angle rather than just turning on the xbox and running the app and not worrying about camera position.

    • one random winner legacy 10 years
      reply
      May 10, 2011 8:35 AM

      How much you want to bet that continuing support dies in 3 years?

      • MaxPete82 legacy 10 years
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        May 10, 2011 8:42 AM

        I would take that bet, Skype is a huge valuable brand and MS isn't about to toss it aside.

        • one random winner legacy 10 years
          reply
          May 10, 2011 8:52 AM

          I'm not saying they would, but outside of Windows platforms I've noticed MS products seem to be... lacking, save for their Office suite.

    • jtthe2nd legacy 10 years
      reply
      May 10, 2011 8:54 AM

      Gold service = voice and video. Silver service = video only.

    • valcan_s legacy 10 years legacy 20 years mercury super mega
      reply
      May 10, 2011 9:03 AM

      Massive news, thanks for this.

      Very interesting, this is gona be good.

    • Dark Drakonis legacy 10 years
      reply
      May 10, 2011 9:46 AM

      Good move on Microsoft's part... better to acquire an established product and integrate it than spending millions on R&D to come up with a product that noone will move to with one already established.

      Sony must be goin crazy on missed opportunities right now >

      • Sailor of Fortune legacy 10 years
        reply
        May 10, 2011 12:59 PM

        They're going to buy gamespy

      • Serpico74 moderator legacy 10 years legacy 20 years
        reply
        May 10, 2011 2:11 PM

        It isn't about the technology, it is about the established userbase. They can create something that is technically and functionally superior to Skype, much as they did with Silverlight compared to Flash, and they would still have a very hard time getting people to move over.

        It is simpler to just buy the brand and go from there

        • Downforce legacy 10 years legacy 20 years
          reply
          May 10, 2011 2:12 PM

          bingo. people don't want organic growth from microsoft anymore. MS will just go old school and fire up the M&A engines.

    • dubiousbrick legacy 10 years
      reply
      May 10, 2011 10:58 AM

      Awesome, can't wait for skype to stop working on my iOS

    • radio_babylon legacy 10 years
      reply
      May 10, 2011 11:42 AM

      does this affect valve's licensing of the SILK codec for steam?

      • one random winner legacy 10 years
        reply
        May 10, 2011 11:52 AM

        I would say not immediately, though they'll likely have to renegotiate with MS.

    • BlockheadBrown legacy 10 years
      reply
      May 10, 2011 1:17 PM

      Quite awesome of you, Microsoft! :)

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