Microsoft acquires skype for $8.5 billion in cash

In Skype, Microsoft is buying the leader in Internet voice and video communications, with million users per month connected for more than minutes a month on average. That large and active user base represents a major asset, Steven A.

Ballmer said. In an interview Mr. Buying Skype, analysts say, gives Microsoft the upper hand in the fast-growing market for Internet communications, both for consumers and businesses.

Windows Live Messenger offers free instant messaging, and voice- and video-chat. It currently boasts around million active users each month, typically with around 40 million online at any one moment.

Microsoft has an equivalent corporate-oriented system, Lync formerly Office Communication Server that allows companies to create private networks that combine the communications capabilities of Live Messenger with corporate manageability. The underlying technology of both platforms is common, allowing interoperability between Live Messenger and Lync.

The company also plans to integrate Kinect into Lync to create more natural virtual presences. Skype, in contrast, has around a third the number of active users: million each month.

It also has fewer simultaneous online connections: typically million. Its instant messaging and voice and video call features are broadly similar to those found in Windows Live Messenger, though arguably more refined.

Though the Skype user base is very much smaller than that of Windows Live Messenger, it does have one key difference: About 8 million Skype users pay for the service. Read full article. More content below. Steve Ballmer. Chloe Albanesius - PC Magazine. May 10, , AM. In this article:. American businessman, former chief executive officer of Microsoft.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting. Recommended Stories. Atlanta Black Star. Skype, one of the world's most popular VoIP services, had million connected users and accounted for more than billion minutes of voice and video conversations in , according to the companies. It will become a new business division within Microsoft, titled Microsoft Skype Division.