Microsoft Purchases Skype – Facebook and Google Unlucky Suitors

10 May 2011 Internet, IT & e-Discovery Blog Blog
Authors: Peter Vogel

VOIP is likely headed in a new direction now that Microsoft agreed to pay $8.5 billion for Skype. It was reported that Facebook and Google’s offers were in the $3 to 4 billion range, while at the same time Skype was still considering an IPO later this year. As a result of this purchase, Microsoft may end up the Internet leader of communications, information, and entertainment. Clearly Facebook’s play for Skype would have extended the reach of the 600+ million friends and Google’s plan would have enlarged the Google Talk and Voice offerings

Skype was founded in 2005 in Luxemburg, and purchased by eBay for $3.1 billion in 2005. But in 2009 eBay sold a majority to an investor group.

Without question VOIP is the future of communications and it will be interesting to follow Skype in the future. What do you think about Microsoft winning this competition over Facebook and Google?

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