Microsoft to buy Skype for $8.5B, two slow companies to get slower

This is the kind of deal that you know is bound to fail in the long run. Skype is treading water, having just released a horrific Mac update to its chat software but building passable software on iOS as well as other platforms. Its major problem is that its innovation has slowed to a crawl since being picked up by eBay.

Which segues nicely to Microsoft, who is clumsily making purchases to cover its lack of innovation. Instead of building a VoIP service for its Windows Live Messenger, they are scooping up Skype’s huge user base of users for a lot of money -$7B if the WSJ is correct. Probably too much for a company that isn’t innovating and relying on old technology for its revenues. Speaking of Revenues, Skype’s plan is to start advertising in its chat window if its IPO prospectus is to be believed.

A Skype purchase will kill innovation (what’s left of it anyway) in the Skype product as it gets integrated with Windows Messenger/Live Communications probably long enough for Facebook and Google (and even Apple) to render it useless with their own VoIP products.

But, one thing will stay constant. Skype has always been behind on its Mac versions. Look for Microsoft to continue that trend as it is their sweet spot (see Office or anything really).

Best reactions from around the web:

“Microsoft buying Skype for over $7 billion isn’t the craziest thing I’ve heard, but it’s damn close.” Nilay Patel

“Everyone jump on Skype” is about to become “Everyone jump on Microsoft P2P VoIP client for Windows Live Communications 7 Home/Pro/Ult” :-/ – Rene Ritchie

So Microsoft is paying $7 billion to lose even more money online each quarter. Makes perfect sense. – MG Siegler

Two turds don’t make an Eagle – Vic Gundotra

Updated to $8.5B per Kara Swisher with an announce today.

*thanks 9to5Mac*

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Skype Announces the Launch of Advertising

Skype has announced the launch of advertising which will appear in the Skype Home tab starting this week.

We believe that advertising, when done in the right way, will help us continue to invest in developing great products.

Details:
● We’re working with some great advertisers, including Groupon, Universal Pictures, and Visa.
● Ads will appear in the US, UK and Germany and advertising sales for Skype are initially focused in those markets.
● You may only see ads occasionally. Our initial plan is to show an ad from one brand per day in each of the markets where advertising is being sold.
● The ads will appear in the Home tab in Skype for Windows, and we may experiment with ads in other areas as well.
● The ads won’t interrupt your Skype experience. You won’t suddenly see annoying pop-up ads or flashy banner ads in middle of conversations.
● We may use non-personally identifiable demographic data (e.g. location, gender and age) to target ads, which helps ensure that you see relevant ads. For example, if you’re in the US, we don’t want to show you ads for a product that is only available in the UK.
● You can opt out of allowing Skype to share this non-personally identifiable demographic data with advertisers from the Privacy tab in Tools ▸ Options.

You can see an example ad below...



*thanks iclarified*

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Skype Updates iPhone App With Skype for TV Support

Skype has released an update to its iPhone application that lets you make video calls to Skype for TV users.

With Skype on your iPhone, iPod touch or iPad, you can make and receive calls, and instant message anyone else on Skype, wherever they are in the world. You can also save on international calls and text messages to phones. Skype is free to download and easy to use. With the latest version, you can now call over 3G*, and keep Skype running in the background.

Features:
• Call Skype-to-Skype, wherever you are
• Great value international calls and text messages
• Instant message for an instant response

What's New In This Version:
You can now make video calls to a wider selection of Skype clients and devices, such as Skype for TV.

You can download Skype from the App Store for free.


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Skype Acquires Qik for $100 Million?

BusinessInsider learned from a source that Skype has acquired Qik for $100 million.

Internet phone giant Skype has acquired Qik, the service that lets you stream video from your smartphone, for around $100 million, a source tells us. Skype will probably announce the news this week at the Consumer Electronics Show in Las Vegas, this source says. We've reached out to Qik and Skype for confirmation but have not heard back. This is a reliable source, however, who has been correct about big acquisitions in the past.

Qik is a mobile live video streaming and two-way video conferencing application that allows users to stream live video from their cell phones to the internet. Qik enables users to record and upload video directly from your iPhone.




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Skype Updates iPhone App With Video Calling!

Skype has updated its iPhone app to make Skype to Skype video calls over Wi-Fi and 3G.

With Skype on your iPhone, iPod touch or iPad, you can make and receive calls, and instant message anyone else on Skype, wherever they are in the world. You can also save on international calls and text messages to phones. Skype is free to download and easy to use. With the latest version, you can now call over 3G, and keep Skype running in the background.

What's New In This Version:
• Make Skype to Skype video calls on WiFi and 3G*
• Call Skype desktop users (Mac OS X or Windows) and other iPhone users.
• Two-way video calls supported on iPhone 4, iPhone 3GS and iPod touch 4th gen.
• Receive only video supported on iPad and iPod touch 3rd gen, with no camera.
• Make video calls in portrait and landscape.
• Skype video calling requires iOS 4.0 or above.
*Additional Data charges may apply

You can download Skype from the App Store for free.














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