All About Microsoft

Mary-Jo Foley

Skype is officially now a Microsoft division

By Mary Jo Foley | October 14, 2011, 6:36am PDT

Summary: Skype is officially now part of Microsoft, as of October 13, with the closing of the $8.5 billion acquisition.

On October 13, Skype became an official Microsoft division, with the closing of the Microsoft acquisition of the company.

Microsoft isn’t sharing any new information about its plans for Skype or a timetable for when Skype will be integrated with products and services. Microsoft officials said previously that Skype will be integrated into everything from Xbox Live and Windows Phone, to Office and its Lync unified communications offering. I’ll be interested to see how Microsoft ties Bing and Skype together, as well.

Microsoft is pledging to continue to make Skype available for non-Microsoft products, including iPads, iPhones, Android phones, Mac OS X and more. As WinRumors noted on October 14, Skype did just remove Google toolbar distribution from the latest version of Skype for Windows, however.

Microsoft announced in May 2011 that it would pay $8.5 billion to acquire Skype. U.S. antitrust authorities approved the transaction in June 2011. The European antitrust authorities approved it on October 7, 2011.

Skype will operate as a separate Microsoft division headed by now-Microsoft-president Tony Bates.

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Skype Technologies S.A., Microsoft Corp., Corporate Law, Security, Business Operations, Mary Jo Foley

Mary Jo has covered the tech industry for more than 25 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

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RE: Skype is officially now a Microsoft division

Alan Smithie Updated - 14th Oct

So it's soon to be windows only then !

To be headed by Mr Bates no less.

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RE: Skype is officially now a Microsoft division

Rich Miles 14th Oct

@Alan Smithie

"So it's soon to be windows only then !"

Let's hope not.

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RE: Skype is officially now a Microsoft division

Michael Alan Goff 14th Oct

@Alan Smithie

Why would it? Microsoft is in the business of making money. I could always point to Office for Mac to prove you wrong.

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RE: Skype is officially now a Microsoft division

Rama.NET 14th Oct

@Michael Alan Goff
And Bing on both iOS and Android.

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I forgot about that

Michael Alan Goff 14th Oct

Though I can't really get Bing on my Android device last time I checked. Be right back, checking again.

*looks*

Nope, not yet. D:

Why must programmers continue to hate on my tablet?!

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Probably because...

John L. Ries 14th Oct

@Michael Alan Goff
MS makes more money from sales of Windows than they're likely to from Skype subscriptions.

Historically, the biggest selling point for MS operating systems has been compatibility with "the rest of the world". If they develop for non-MS systems (other than MacOS, which is no threat, since you have to buy an Apple computer to run it), then they lose a competitive advantage for Windows. Note that MacOS X is the *only* non-MS platform for which MS develops.

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RE: Skype is officially now a Microsoft division

Michael Alan Goff 15th Oct

@John L. Ries

Wrong about the platform thing. Microsoft makes apps for multiple platforms, such as their mobile bing app (just not for my tablet). I'm fairly certain there are other examples, it's just a bit too early for me to care.

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Contributr

I doubt MS is going to drop all the other platforms Skype supports

Mary Jo Foley 14th Oct

They've said publicly they won't. Plus, as with Office and Bing: They want to maximize direct/indirect revenues so they're going to make it available on as many platforms as can be supported. MJ

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RE: Skype is officially now a Microsoft division

Alan Smithie Updated - 15th Oct

@Mary Jo Foley

MS have said many things publicly only to do a volte-face later, silverlight for example - just ask those developers who geared up for it.

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RE: Skype is officially now a Microsoft division

Michael Alan Goff 15th Oct

@Alan

And they would make more money by making it Microsoft-only how? How would they get their ROI of that nice 8.5 billion?

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RE: So it's soon to be windows only then !

bobiroc 14th Oct

@Alan Smithie

Doubtful. I mean this is not Apple Facetime. Don't be a troll and make comments based hateful assumption.

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RE: Skype is officially now a Microsoft division

bitcrazed 14th Oct

@Alan Smithie - try reading beyond the headline:

Microsoft is pledging to continue to make Skype available for non-Microsoft products, including iPads, iPhones, Android phones, Mac OS X and more

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Speaking of which, how is the Siri app working today?

toddybottom 14th Oct

@Alan Smithie
Oh right, today Apple killed it for everyone but iPhone 4S owners. That's what happens when Apple buys a company.

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RE: Skype is officially now a Microsoft division

bobiroc 14th Oct

@toddybottom

They have to do something to get the drones to upgrade with every iPhone revision. The same drones will do it when a 4G capable one comes out. Just because Apple says it is not ready for the masses yet they will not include LTE or other tech. They pulled this stunt with 3G too. Even though 3G was around for quite some time the first iPhone was not capable of using it. Then a year later something "magical" happened and a 3G phone came out and people broke contracts and paid extra fees just so they could upgrade.

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We'll find out

John L. Ries 14th Oct

@Alan Smithie
MS claims that non-MS platforms will continue to be supported, but time will tell what that means in practice.

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RE: Skype is officially now a Microsoft division

Cylon Centurion 14th Oct

Already, a new Skype update has come through the tubes removing the bundled Google garbage and fixing a few errors with Windows 8.

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RE: Skype is officially now a Microsoft division

LoverockDavidson_-24231404894599612871915491754222 14th Oct

I had to laugh at the line where they removed the Google distribution. Poor Google just can't catch a break. Big things are coming for Skype, all the Microsoft integration plus Facebook. This purchase is really going to pay off. I bet we will see another blog from SJVN telling us how this is still bad.

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I certainly hope so....

linux for me 14th Oct

@LoverockDavidson_

Because it IS that bad....So sorry for you.

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RE: Skype is officially now a Microsoft division

kevinprov 14th Oct

My experience with skype has never been that great, in regards to video chat. Constant freezes/reboots made it always seem to me a microsoft product anyway!

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RE: Skype is officially now a Microsoft division

bobiroc 14th Oct

@kevinprov

The key phrase there is "My Experience". I have been using Skype for years and Microsoft Products for longer than that and those symptoms are not typical so please do not classify that as a typical symptom.

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Ubuntu...?

Naryan 14th Oct

Yeah it'll still be there on other platforms, but it won't get any better with time. Master Bates will make sure of that.

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RE: Skype is officially now a Microsoft division

Badgered 14th Oct

As WinRumors noted on October 14, Skype did just remove Google toolbar distribution from the latest version of Skype for Windows, however.

Guessing that'll be replaced by a Bing bar distribution...
I realize it'll never happen due to revenue, but I'd rather these were opt-in installations.

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RE: but I'd rather these were opt-in installations.

bobiroc 14th Oct

@Badgered

So do I and that goes for any software installation that wants to auto-opt in anything. They are all guilty of it as I have to clean out Google, yahoo, Ask, Bing, and other toolbars as well as other browsers that get installed and little programs like coupon printer and such. Hate them all.

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RE: Skype is officially now a Microsoft division

SJLyons50 14th Oct

I hope they do keep the non-MS line of Skype programs going, they didn't do that when they bought Symbari Inc. and rolled that company's Antigen anti-virus software into what's now known as Forefront. Antigen was produced for both Exchange and Lotus Domino servers, after MS bought them the Domino product got dropped.