WHAT IS MICROSOFT PLANNING FOR SKYPE ACQUISITION?

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As news circulates of the Microsoft planned acquisition of Skype, an $8.5 billion deal, Microsoft is beginning to share some of their perspective and insight into the potential of the popular video chatting service. Microsoft’s chief executive has states that he sees tremendous revenue potential with Skype, particularly with the video advertising platform.

Skype’s chief executive will now take on the role of the Microsoft Skype division president, and has also indicated that advertising is a key monetizing revenue stream for them. In fact, it has been revealed that the acquisition transpired from a discussion by both parties regarding Skype utilizing the Microsoft sales team to increase advertising on their internet telephone service.

The good news for Skype members is that with the focus on increasing revenue from advertising, it is not likely that they will raise existing subscription prices or start charging for the now free video chat service. The current program limits advertising messages to the top of the video screen when engaging in Skype services, and the partnership now intends to implement powerful video advertising.

Rumors had circulated that other companies had approached Skype, including Google and Facebook, and had tried to acquire Skype recently. Those rumors were denied by Skype chief executive who indicated that they had an unsolicited offer from Microsoft.

Microsoft’s purchase of Skype marks their largest deal in their 36 years of existence, and is said to be kicking off a broader push into the consumer market. Skype boasts more than ten million paying customers, and has been downloaded by the public more than seven hundred million times.