Friday, May 13, 2011

Microsoft Biggest Acquisition: Skype


Microsoft acquire Skype for $8.5 billion is the biggest acquisition of the company's history.

Microsoft Chief Executive Steve Ballmer, though, sees the Internet as an essential battleground for Microsoft, a company that still makes the vast bulk of its profits from Windows and Office software systems. Investors have become increasingly concerned about Microsoft's ability to squeeze continued growth out of those businesses, as rival technologies from Apple Inc., Google and others put more pressure on profits.

As Microsoft introduces the cloud technology, Skype will be a valuable tool. As the WSJ noted, Microsoft has not had a major brand purchase in some time and Skype, which was founded in 2003, is a major name in the online space with its VOIP services.

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