Umass Dartmouth Center for Marketing Research Blog

Skype’s New Owner and What it Means for Everyone Else

This week Microsoft bought the Internet telephone service Skype for a whopping $8.5 billion which is the biggest purchase the computer software maker has transacted in its 36 years of business.  Currently Skype has about 170 million users who log in every month and now Microsoft can use this to their advantage. Microsoft plans to merge Skype’s functions to its Xbox game console, Kinect, Outlook email, and its smartphones.

There were talks that Facebook was also in the works on purchasing Skype for about $3 or $4 billion, but the plan fell through. Some think this will hurt Facebook because they lost out on having a foothold in the voice and video conferencing sector, but some believe Facebook is “the big winner in this transaction.” Microsoft is an investor in Facebook ($240 million) and there were talks in the past that they would join forces in social search with Microsoft’s search engine Bing. Possibly in the future Microsoft will use Skype so users can connect to their accounts through Facebook. With their past history it is believed this will be a successful venture for the two firms if each were to go forward with this plan. Even if either neglected the idea, Facebook is still believed to thrive and not face negative reactions by their more than five hundred million users.

All in all, this idea could prove to be another major step that will boost Facebook’s reputation amongst its current users and help boost Microsoft to places they’ve yet to venture. Facebook doesn’t want to be known as a phone company, but improvements are always welcomed by their team. In realistic terms this could mean another mode of communication each user can utilize through their Facebook experience. A few weeks back I blogged about Bobsled, offered through T-mobile by Facebook, to help improve Facebook’s chat application. It was previously found that Bobsled has stopped offering the application through Facebook at this time due to inadequate planning or “difficulties found in its usage.” With plans about Skype coming to Facebook, this could be a more viable plan for Facebook and Microsoft to implement, but we will have to wait and see.

If you wish to read more about the blog post this week, head over to the related links below for more information. Thanks for reading again this week everyone!

http://www.huffingtonpost.com/2011/05/10/microsoft-skype-deal-facebook_n_860227.html

http://www.huffingtonpost.com/2011/05/10/microsoft-buys-skype_n_859802.html?ref=fb&src=sp

http://www.huffingtonpost.com/2011/05/10/microsofts-skype-plans-what-it-means_n_859948.html

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Filed under: Social Media

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