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Microsoft in talks with Skype – Purchase or Partner?

Written on:May 8, 2011
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Well this is an interesting turn of events.

The last couple of days there has been a lot of chatter in the the tech blogosphere about the possible purchase, or deep partnership, of Skype with either Facebook or Google looking to seal the deal.

While there is some sense to the Facebook and Skype deal many are suggesting that any deal between Skype and Google would be just to keep Skype out of the hands of Facebook.

Then this morning we get news that there might be a dark horse in these discussions: Microsoft.

The rumors are coming out of a post at GigaOM by Om Malik himself and has the possibility of an announcement on the matter as soon as Monday some time; and that people involved in the discussions between Microsoft and Skype are burning the midnight oil, so to speak.

Om makes three good points as to why this deal, or partnership, or investment would make sense for Microsoft:

  • Skype would givemMicrosoft a big boost in the hotly contested enterprise collaboration market places, thanks to Skype’s voice, video and sharing capabilities. It would be particularly useful for competing against Cisco and Google, two of its main rivals in the collaboration business.
  • It would give them a must-have application/service that can help with the adoption of the future versions of Windows Mobile operating system.
  • it would give Microsoft an outside chance of working with carriers, many of them looking to partner with Skype as they start to transition to LTE-based networks.

Like Om I’m not too sure how much sense an outright acquisition of Skype would make much sense but given that Microsoft and Facebook are already working very closely together across many areas the possibility of the two companies making a heavy investment in Skype would make sense; especially if it would give them primary access to the company and its software.

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  5. Microsoft and Windows Round-up – 12.7.2010
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You lost me at "

Skype would givemMicrosoft a big boost in the hotly contested enterprise collaboration market places"... You're trying to tell me that Microsoft needs to tell their enterprise customers to drop OCS/Lync and LiveMeeting for Skype? Let me ask you a straight question: have you *ever* worked in an enterprise?

While it may makes sense fro Microsoft (don't they already have an enterprise VoIP app?) to buy Skype I don't think that will happen. With rumors coming out about deals with FB and Google at the same time, I would suspect that what Skype is looking to do is build as many big name deals as possible to strengthen it's brand and user base prior to going public.

OTOH, Microsoft already got rid of "Live Space" by partnering with – and migrating to – WordPress. They could get rid of Messenger by partnering up with Skype, it would make some sense by opening up a new market segment for Skype while relieving MS of all the VoIP and video conferencing developments.

I would think that the userbase of WLM is WAY too big and active to simply abandon