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The Technology Giant "Microsoft" Is Buying Skype

Microsoft Corp’s catch up game with Google gathered pace once more with the acquisition of the Luxemburg based company Skype for a reported $8.5 billion.

Skype’s  acquisition is not exactly going to add to the market value of Microsoft, as the loss making Skype was acquired  with a view to making further inroads into the mobile online presence through windows based phones and explore internet telephony, Skype  will provide just the base from which to increase its market share, the intended audience will thus be more aware of the mobile office platform  available through Microsoft marketing, the current user base of 145 millions users and the emerging business users will be perfect for the video conferencing facilities that Microsoft  will tout through the Skype’s VOIP application.

Skype potential suitors had raised the IPO’s (initial public Offerings) with Facebook and Google lurking in the background initial valuations of 3- 4 billions USD had generated great hype and like a businessman seeing potential Microsoft came a knocking with an offer that was just too good to turn down

VoIP in the early days was seized upon by Skype the Luxemburg based company and developed it to what it is today a free online voice and video calling facility allowing users to communicate from all across the globe.

The internet infrastructure has taken online gaming to a new dimension and in the business world video conferencing is the feature that most interests companies wanting a global reach ,yet wanting to save money and time by and their carbon footprint as well

Microsoft expertise in mobile applications coupled with the Skypes’s reputation for providing an easy online communications model for voice and data, this was a marriage made in IT Heaven.

Skype is a long term investment in the future and not a short term gain and with the PC market under threat this see Microsoft  a perfect opportunity to sustain the presence of Microsoft even further into the future

Microsoft’s plan for the newly acquired company will be managed as a new Business unit headed up by Tony Bates who will be reporting directly to CEO Steve Ballmer,

With windows 8 already coming on as a main stay of PC operating system Microsoft as a replacement for XP, the natural progression is for this collaboration to be developed for the Tablet market for the mobile users.

This is the biggest deal in the history of Microsoft  and inflated price tag will make the share holders of Skype happy , Microsoft wont be looking to increase their profits greatly more as a another road into the online / telephony market ,the $8.5 billion price tag wont exactly stretch cash rich Microsoft.

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