Technology Development

It has been just a few since the news of Facebook buying out or getting into a partnership deal with Skype was there in the internet world. Now the Wall Street Journal comes up with the claim that Microsoft has plans of buying Skype for $8.5 billion. In the last economic year Skype made total revenue of $860 million. It also incurred a small loss of $7 million. It is not for the first time that Skype is being purchased. After it was started in 2003 it was bought by eBay in 2005 for $3.1 billion. If Microsoft makes this deal then it would be the biggest deal ever by Microsoft. It will even surpass the $6 billion deal with an advertising firm in 2007. In the past Microsoft has kept away from huge deals and has only been involved in small and easy to manage deals. But this deal is a signal showing that Microsoft has resolved all such issues related to huge deals.

The experts are obviously not able to understand the reason of the deal. Microsoft’s Window Live Messenger has all the functions like Instant messaging, voice and video formats of chats. The active users of window Live Messenger in a month are about 330 million and that of Skype are 124 million. Skype has a few things which will prove valuable like its telephony infrastructure, which Microsoft can use in its applications like Lync, Exchange and Live messenger. Skype does have some extra features to offer but the big question is; are the features worth $7 million?