Microsoft and Skype

Discussion of Microsoft's acquisition of Skype - a service offering online phone calls. It's predicted that Microsoft's strong global ad sales force will be exploring several ways to grow Skype's online advertising revenue.

Microsoft and Skype

Norm Johnston

Background

Microsoft recently announced an $8.5 billion acquisition of Skype, the internet's leading voice and video calling service. It is Microsoft's largest ever acquisition, worth 400 times Skype's 2010 operating profit and ten times annual sales. The acquisition's value has been widely debated, with Microsoft's ability to integrate and leverage the technology to build advertising revenue a critical factor in various industry predictions of success or failure.

Details

The rise in broadband internet access in recent years has led to a massive increase in the use of free online phone and video calls. Skype now...

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