Early last month, news broke that Microsoft agreed to buy Skype for a whopping $8.5 billion in cash. That sum for a company that’s been losing money quarter over quarter is a huge bet on Microsoft’s part, but it makes sense for the brand and the customer base as Microsoft hopes to strengthen its mobile offerings.
Skype is the dominant VOIP internet calling company at the moment with a huge user base and a well recognized name and service. Concerns arose that Microsoft would limit the support of Skype for other platforms in favor of their own, although the company has said that Skype would run as its own separate division. However, the concern isn’t big enough for the FTC to find any anti-trust issues with the deal.
Microsoft will need Skype to help it compete against Apple and Google’s video calling offerings. Although Microsoft could technically develop their own service from the ground up, Skype’s large user base and brand recognition will give Microsoft a much needed boost.