Skype Sold for Billions

Rumors have been circling for quite sometime about the acquisition of Skype by potential buyers like Google, Facebook and Microsoft, however, it was recently announced that Microsoft won the battle.  Coming out victorious proved to be quite expensive with Skype’s price tag at $8.5 billion.  Yes, BILLION!

Mashable reported that Skype will soon be integrated with various Microsoft products like Outlook, XBox, and Windows phone.  The price tag is still mind boggling considering Skype has yet to really make it in the green, let alone making more than one billion dollars, ever.  On top of that, Skype seems to mesh better with Google and Facebook’s business.  It’s apparent that Miscrosoft is desperate to compete regardless of the price tag.

This comes as a blow to Facebook and Google whom have continuously tried to reinvent themselves.  Facebook has been searching for the next big thing to keep their current users on board when many early adopters seem to be using the site less  (my personal observation as most of my friends were early adopters of Facebook).  If anyone has legitimate stats on that, I’d be very curious!

Google has struggled to find a place in social media and online networking.  They need to move past Gmail and find something that is as strong as their search engine (which is also losing users, that’s a legitimate stat- Google Loses Market Share)  Google’s co-founder and new CEO, Larry Page, has also been making a big push toward social integration on search.

This purchase is huge for Microsoft but at that price, they need to do something huge with it in order to increase revenue.  I suspect some sort of integration with Bing which will allow them to further gain market share over Google and generate a larger user base of both Skype and Bing.

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