Microsoft deal should vastly expand reach of Skype (AP)

SAN FRANCISCO – Imagine using your Xbox and switching from a game to a video chat with a faraway friend holding an iPad. Or going into your office email to invite Grandma to a virtual family reunion beamed on TV sets to relatives across the country.

Microsoft’s $8.5 billion purchase of Skype is supposed to make using the Internet for video phone calls as common as logging on to Facebook or instant messaging is today.

If it wins regulatory approval, the deal announced Tuesday provides Microsoft, the world’s largest software maker, with the means to sell more digital advertising and offer more popular conferencing tools to help businesses save money.

Skype’s services also span hot markets — online socializing, mobile phones and digital video — where Microsoft has been struggling to catch up with Facebook, Apple and Google.

Analysts and investors couldn’t seem to agree whether Microsoft is wasting its money on an unprofitable service or has pulled off a coup that will help it restore clout. Microsoft stock was virtually unchanged, falling 0.6 percent.

About 170 million people worldwide who use Skype regularly for calls and chats. Microsoft believes it can attract hundreds of millions more by weaving Skype into its products. Not just

Read More from the Article Source: Full Article


Filed under Technology and tagged , , , , .

Leave a Reply