Microsoft's Big Buy: How Skype's Acquisition Changed the World of Video Teleconferencing
In 2011, Microsoft made a bold move when it bought the popular video teleconferencing software Skype for an impressive $8.5 billion. This acquisition marked one of the most important moments in the world of video teleconferencing, changing the game in terms of how we communicate online.
What is Skype?
Skype is a software application that allows users to make voice and video calls over the internet. It is one of the most popular video teleconferencing solutions on the market, with hundreds of millions of users around the world.
Skype was founded in 2003 by two Swedes, Niklas Zennström and Janus Friis. The two had previously founded Kazaa, a peer-to-peer file sharing service, and had sold their stake in the company for millions. With that money, they created Skype, which quickly became one of the most popular video teleconferencing solutions on the market.
Why Did Microsoft Buy Skype?
Microsoft had been looking for ways to expand its presence in the world of video teleconferencing for quite some time. With Skype, Microsoft saw an opportunity to acquire a popular and widely used service for a relatively low price. Microsoft was also attracted to Skype's user base, which was estimated to be over 700 million users at the time of the acquisition.
Microsoft also saw Skype as an opportunity to take on its rival, Google. Google had recently acquired the video teleconferencing service, Google Hangouts, and Microsoft wanted to compete with them in this space. With the acquisition of Skype, Microsoft was able to do just that.
How Has the Acquisition Changed Video Teleconferencing?
The acquisition of Skype by Microsoft marked a major shift in the world of video teleconferencing. Microsoft integrated Skype into its existing products, such as Windows and Office, making it easier for users to access the service. Microsoft also invested heavily in developing new features for Skype, such as group video calling and screen sharing.
Skype has also been integrated into other Microsoft products, such as Outlook, Xbox, and the Windows Phone. This has made it easier for users to communicate with each other, regardless of the device they are using.
The acquisition of Skype has also had an impact on the video teleconferencing industry as a whole. Skype's popularity has made it the go-to service for many businesses, forcing other companies to innovate and offer competitive services.
Microsoft's acquisition of Skype in 2011 was a major milestone in the world of video teleconferencing. Skype's integration into Microsoft's existing products and services has made it easier for users to access the service, while its popularity has forced other companies to innovate and offer competitive services.
The acquisition of Skype by Microsoft is an example of how a company can make a major impact on an industry by making a strategic acquisition. It is a testament to the power of technology