Skip to main content

Microsoft buys Skype for $8.5 billion

microsoft-buys-skype
Image used with permission by copyright holder

Rumors may have pointed toward a Google or Facebook buyout, but Microsoft announced today that it has definitively agreed to purchase Skype for $8.5 billion in cash (we learned about this last night). The buyout has been approved by both companies. The Redmond software giant claims that it will continue to support Skype on non-Microsoft platforms, but is quick to point out that “Microsoft devices like Xbox and Kinect, Windows Phone, and a variety of Windows devices will connect Skype users with Lync, Outlook, Xbox Live, and other communities.

“Skype is a phenomenal service that is loved by millions of people around the world,” said Microsoft CEO Steve Ballmer. “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.”

According to a press release, Microsoft will create a new division specifically for Skype with current Skype CEO Tony Bates assuming the title of president of the Microsoft Skype Division. He will report directly to Microsoft CEO Steve Ballmer. “Tony Bates has a great track record as a leader and will strengthen the Microsoft management team. I’m looking forward to Skype’s talented global workforce bringing its insights, ideas and experience to Microsoft,” Ballmer said.

This isn’t the first time Skype was purchased by a large company. In 2005, eBay bought Skype, but lacked a vision or plan to implement or do anything with the service. Much like the millions who waste money on eBay, the Web auction site got a serious case of buyer’s remorse. After letting it sit and whither for four years, eBay finally sold Skype to an investor group led by Silver Lake in 2009. It went for $2 billion. Since that time, the service has made some strides, obtaining IP for its technology and increasing its usage. More than 170 million users are now on Skype using 207 billion minutes of voice and video last year alone.

We aren’t sure why Microsoft paid so much ($8.5 billion), but it may have had to outbid competitors. Luckily, Microsoft has a $40 billion cash warchest for just these types of purchases. Skype’s technology could easily enhance almost every major service and product Microsoft offers, especially Windows Phone. Deep integration with Windows Phone could give Microsoft a leg up on the competition as cellular calls slowly move away from voice networks and onto wireless carrier data networks.

What do you think? Will this hurt Skype on Android and other platforms?

Jeffrey Van Camp
Former Digital Trends Contributor
As DT's Deputy Editor, Jeff helps oversee editorial operations at Digital Trends. Previously, he ran the site's…
MSI could be prepping next-gen OLED gaming monitors — and they look insane
Marvel's Spider-Man running on the Samsung Odyssey OLED G8.

MSI is getting serious in the gaming monitor space. Newly leaked information suggests that the company is preparing at least six new QD-OLED monitors that are set to arrive in the coming months. It is said that the new models will range from 27 inches to 49 inches in size, with refresh rates of up to 360Hz.

The alleged information comes from Twitter/X user @chi11eddog, who is known for consistent and reliable leaks, particularly regarding MSI and general hardware-related information. The upcoming monitors are expected to be part of MSI’s MPG and MAG series of product lines, with the first new model scheduled for November 2023.

Read more
Bing Chat’s ads are sending users to dangerous malware sites
Bing Chat shown on a laptop.

Since it launched, Microsoft’s Bing Chat has been generating headlines left, right, and center -- and not all of them have been positive. Now, there’s a new headache for the artificial intelligence (AI) chatbot, as it’s been found it has a tendency to send you to malware websites that can infect your PC.

The discovery was made by antivirus firm Malwarebytes, which discussed the incident in a blog post. According to the company, Bing Chat is displaying malware advertisements that send users to malicious websites instead of filtering them out.

Read more
Best MSI gaming laptop deals: Save on the Bravo, Delta and Stealth
MSI GT77 Titan (2023) playing Cyberpunk 2077.

MSI makes some of the best high-end gaming laptops on the market. Their Bravo and Delta line are great for gamers on a budget, while the impressive Stealth line is here for people looking for a powerhouse mobile gaming system. Thankfully everything from the budget laptops to the professional rigs is on sale right now, so you can save hundreds on a prebuilt gaming laptop with impressive specs. Our picks for the best MSI gaming laptop deals are below.
MSI Bravo 15 -- $800, was $1,000

The MSI Bravo is a good starting place if you're just getting into the world of PC gaming. It has quality components, but nothing too flashy or expensive. It's compact at just 15.6-inches, but the screen still has a 144Hz refresh rate and 1080p resolution. The main money saver is in the AMD Ryzen 5 processor. The graphics card is an impressive Nvidia GeForce RTX 4050, which is where most of the budget goes. It skimps a bit on memory, with a standard 16GB of RAM but only 512GB of storage on its SSD.

Read more