News‎ > ‎

Is Microsoft's Purchase of Skype a Good One?

posted May 11, 2011, 2:02 PM by Nathan Eliason   [ updated May 11, 2011, 2:25 PM ]
    As many of you may already know, Microsoft recently acquired the company Skype for $8.5 billion. But was it a good deal? Let's start with the basics.
    What is Microsoft? Although most people immediately think "Windows!" when they hear of the company Microsoft, they have branched out to many more things. They create computers, software (programs), operating systems (like Windows), cloud computing (see former post), email (MSN!), Bing, XBOX, and more!
    What is Skype? Skype is a 'freemium' service that allows users to use login information to sign on on many different devices (desktops, laptops, iPads, smartphones, and more) and make voice and video calls to other users. Regular communication with Skype is free, to video chat with another Skype user. But if you want to call a number and chat with them, it costs a low rate.
    Why would Microsoft buy Skype? Microsoft could begin incorporating the service with Windows Live and Hotmail accounts, making it much easier for users to use and potentially purchase credits with Skype. Microsoft also must see a future of profit for the company. Most of the companies and services Microsoft has purchased before, however, have ended up dying horrible deaths as Windows is expected to do. There is just something about the company that seems to slowly squeeze and kill the usefulness and ease out of everything it touches.
    Is it a good buy? No. Skype is not worth close to what Microsoft paid for it, and the service is not getting any more popular. Plus, if the service really catches on and everyone begins using it, users will stop paying for credits to call landlines and cell phones and just video chat for free! 
Comments