back to article Microsoft poised to make biggest ever buy – Skype

Microsoft is close to buying VoIP service Skype for about $8.5bn. An announcement could come as soon as today according to sources collared by the Wall Street Journal. But the paper cautioned that the deal was not final and may still fall through. The deal would be Microsoft's biggest ever, costing in the region of $8.5bn …

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  1. Steve Davies 3 Silver badge
    Linux

    Oh Dear.

    There goes any hope for non MS platform clients.

    'EEE' is alove and working hard.

    Embrace = Buy Skype - far too lazy to develop their own tech. Lets just but all these users.

    Extend = Change the api, drop Linux, OSX and all other clients. Only W7/W8 & WP7 clients now work. Put all the users is a gigantic AD and there you go. Not paid your daily MS Tax? Then you are locked out.

    Extinguish = ??? wait and see.

    I see this fitting in very nicely with their PAYG for everythig quest.

    Bye Skype. It has been nice knowing you.

    1. Manu T
      Joke

      RE: Oh Dear

      Mr. Davies: has anyone ever thought that Mr. Balmer might be an actual Dalek ;-)

  2. Pypes

    No money in skype

    I've got the unlimited US calls package, which costs me somewhere in the region of £5 / month, and every month I probably make over 100 hours of calls to mobile phones in the US, all covered by my package.

    I would bet the mortgage that skype lose money on me every single month, and I doubt I'm in a unique position.

  3. John Smith 19 Gold badge
    Joke

    What's Skype good for

    Simple.

    Playing VC pass the parcel of course.

    You just have to find a bigger mug (with more money) than you are and sell it to them.

  4. JDX Gold badge
    FAIL

    What a load of idiots

    "Mummy I can't use Skype MS are buying it"

    Grow up. Skype will still be skype in at least the short run, major changes will take a long time even if they were wanted.

    Claiming MS will kill non-Windows versions shows ignorance that MS are actively reaching out to other platforms with their web/cloud-based products like Bing (RIM), Azure (everyone), etc.

    Skype is being bought to strengthen their brand and position for the future, which is web-focused, NOT to drive users into using Windows.

    1. Lee Dowling Silver badge

      Eh?

      How does a *web*-focused strategy merge with a P2P video-conferencing software?

      And I think you need to look up how Azure works, particularly the compatibility and languages and underlying server structure (i.e. buy a few thousand MS Server licenses and we'll let you have your "own" Azure cloud - targeted at Dell, HP, etc.).

      I wouldn't call Bing "actively reaching out" so much as "it's there and it'll probably work". By designing something to work for the vast majority of Windows users, the chances are it'll work for the other OS users too without hassle - I think that *ACTIVELY* reaching out is stretching the truth to its absolute limit.

      And anyone in the computer industry for more than a decade of so recognises certain patterns in MS's behaviour - patterns that *can* be used to predict future behaviour with a high success rate. It's nothing to do with MS-hate so much as recognising the same things happening over and over and over. Hell, most of us (myself included) are dependent on MS-deployed OS in order to make the majority of our living.

      And past results have shown that just about *EVERYTHING* I've used from MS (especially the stuff that was bought up from others) eventually turns to shite. That's not a comment on how much I hate MS, but a simple observation. Hotmail? Turned to shite. And I was a paying customer for years. They bought professional backup software to stick into Windows, it turned into shite. WebTV. MechWarrior series. Visio. Rare. Lionhead Studios. Sysinternals. DesktopStandard. Multimap (now part of Bing but I haven't used it since around the time MS took over, and I didn't even know it WAS MS until I just read it). Basically everything that has been bought by MS that I used turned to shite within a year or two of acquisition (some almost immediately). And it wasn't that their functionalities were moved into MS and made the relevant MS products "better" - far from it. Most of the time they were quietly left to die, or merged in a crippled way. Hell, a lot of the MS operating system is nothing more than acquired software with its best functionalities destroyed rather than enhanced by being part of the default OS install (ntbackup can't even ATTEMPT a restore from anything other than the EXACT version of ntbackup you used to backup - sometimes down to the hotfix).

      If the rumours are true, then Skype users are in for a rough ride, whether or not they hate MS and want to use Linux versions. It's just the way history has always gone with MS. I'm a Skype user - at the moment there's no reason to ditch (mainly because it's only a rumour at this point) but this will make me look for alternatives NOW (which I may or may not end up using) whereas if Company X had taken it over, I probably wouldn't bother until I saw problems.

      1. Anonymous Coward
        Coat

        Well said

        Well said.

        "By designing something to work for the vast majority of Windows users, the chances are it'll work for the other OS users too without hassle "

        In a similar vein to to your experience, I have found this not to be true because getting it to work for the vast majority of Windows users usually involves using the latest Microsoft fad method of coding (Com? .Net?) which is barely supported if at all on other platforms, meaning there is just too much work to make it truly portable and so no one bothers. It could of course have been written without tieing it in to a platform specific api but that would not achieve the E,E,E ethos would it?

        Mine is the one with wide horizontal slits all round that keeps the wind and rain out perfectly when I wear it with my MS vertically slitted undercoat.

    2. Ilgaz

      I closed my hotmail account the day ms bought them

      You expect some kind of logic, fair competition from MS, seeing Skype as a service to make money from on all platforms. It isn't like that.

      When they acquired Hotmail, I childishly (!) mailed hotmail support department to ask how to cancel my acccount. They said not logging in for a certain period is enough.

      I proved to be right when they let it fail at least 4 times just because they couldn't stand to fact that it runs on FreeBSD UNIX and tried to switch it to their unscalable joke NT.

      I was again proved right when people daring to use other browsers than IE started to live problems.

      MS didn't have their "Apple" wakening up or IBM and they sure act like MS. The devices accessing Skype (near all) exist thanks to qt. The multiplatform (down to Symbian) exist thanks to qt. It is sort of documented API minus the network so anything (including adium/pidgin) can integrate with it. There isn't a single part of Skype that works best with Windows or IE. It is all standards.

      If you expect MS not to change anything above, you better start with reading Halloween docs right on The Register. It is the same MS, they didn't change, they didn't need to change... Yet.

  5. NightFox
    Happy

    Coincidence?

    6 May 2011: Skype bug gives attackers access to Mac OS X machines

    10 May 2011: Microsoft poised to make biggest ever buy – Skype

    Just saying...

  6. Richard Porter
    Grenade

    "Skype bug gives attackers access to Mac OS X machines" ...

    "Microsoft poised to ... buy Skype"

    Am I jumping the gun here?

    1. NightFox

      Au Contraire, Mon Ami

      Not at all, in fact you're 6 minutes late.

  7. Steen Hive
    Thumb Up

    Being a born optimist

    I'd hope Microsoft's flirtation with "openness" might prompt them to finally open the skype crypto protocol to scrutiny.

    I get fantastic use out of Skype, but am unable to trust it fully because of the closed crypto protocol. This is the main problem with it. ( And of course versions >2.8 having a UI like dog's vomit ) .

    Of course I'm not really a born optimist at all.

    1. BristolBachelor Gold badge

      Makes sense for MS

      I was thinking the opposite. This makes sense for MS. Practically everyone else uses SIP for VOIP (or supports it). Yet with Skype, it's a proprietry "standard" or nothing.

      (Hold the press, I can now pay Skype a monthly fee to get their "free" calls into my SIP VOIP exchange...)

      1. Ilgaz

        SIP users are lucky

        Just imagine if they bought a large SIP provider and started embracing and extending the protocol. Seriously, that could happen. Good luck to them with people exactly like themselves, banning perfectly functioning code like Nimbuzz/Fring from accessing their servers.

        Imagine the idiocy, someone codes for you free, even on development nightmare Symbian and you ban them while you don't make a cent from clients. Perfect acquistion target for MS :)

  8. sw1sstopher
    Gates Horns

    MS find their missing "lync" ?

    In Microsoft terms, this should accelerate their forrays into the VOIP and Integrated messaging from Lync v1(beta version) to v2 in no time at all.

    don't be fooled the addition of Skype is very strategic and required to guarantee some success of Lync technology within the business sector, hence the price....

  9. sw1sstopher
    Jobs Horns

    Microsoft find their missing Lync...

    In Microsoft terms, this should accelerate their forrays into the VOIP and Integrated messaging from Lync v1(beta version) to v2 in no time at all.

    don't be fooled the addition of Skype is very strategic and required to guarantee some success of Lync technology within the business sector, hence the price....

  10. Anonymous Coward
    Thumb Down

    Oh goody

    Expect the installer to become bloated beyond all recognition - just like MS SQL Server.

  11. Nigel 11
    Flame

    I really hate Skype

    Skype is the ultimate security-by-obscurity product.

    I don't know what it does inside, and I can't pin any blame on it except by correlation, but statistically in my experience, it's the PCs whose users have installed Skype that go down with malware infestations, and the ones that haven't that don't.

    1. Greg J Preece

      I think it's your office

      All the machines in my office have Skype installed and they never go down with malware. Ergo, it's your office.

      Or it might be that almost all my machines have Linux installed. ;-)

      1. Ilgaz

        Linux

        MS will sure make Linux Skype client is never outdated and gets same features as Windows client. ;)

  12. Anonymous Coward
    Gates Horns

    very sad day

    This is a very sad day for Skype - they are ruined now, and engulfed by the evil empire.

    So much for its Linux version as well.

  13. Anonymous Coward
    Unhappy

    Sad day

    There goes my skype subscription which had managed to replace my mobile phone for calls and do it cheaper too (on 3G..).

    1. Ilgaz

      Get a SIP account

      SIP is standard, even built into handsets themselves (Nokia etc.) and anything can access it.

      Or, if you say "friends", get access to google talk. It is built on XMPP (Jabber) which is another industry/business standard. Google documents it too.

  14. henchan

    is it the P2P ?

    Could it be possible that MS is attracted by Sype's network architecture ?

    If they can just keep it running the way it is now and even add new platforms, they could look forward to connected MS beachheads everywhere.

    Now, can anyone comment on how feasible is a metropolitan grid of (Nokia) WinPhone7 mobile devices, operating over Skype protocol on unlicensed spectrum, interspersed with connected PCs and friendly third-party routers for back-haul ? It would be really attractive for users to cut out the carrier entirely. I doubt MS has the balls for this much disruption, but it would be very cool, especially in the fast-growing, price sensitive markets where Nokia remains strong.

  15. petur
    Boffin

    Jabber + standard SIP VOIP

    works for me :)

    Never understood why skype got that popular, I removed it as soon as I found it eating all my bandwidth (if you don't understand this, wait until you become a super-node)

  16. Anonymous Coward
    Anonymous Coward

    I would like Skype to support sip

    New clients would then be able to call out to all sip providers, users with unsupported systems would be able to use a standard sip client (to make less secure calls of course).

    Skype could refer to the modes as secure and insecure.

    Odds of Microsoft doing this, if they bought it? About zero I expect.

  17. Ilgaz

    There goes multiplatform

    As I expect some sanity from large corps, I would say "nothing would change" but I got my lesson in Oracle/Sun deal.

    MS will begin to push developers to get rid of nokia (trolltech) qt as they exactly did that with windows phone deal, they forced nokia not to promise qt for windows phone.

    Linux and OS X versions will begin lagging features, exactly like MS messenger for OS X.

    They will make sure the mobile phone versions either get unmaintained (perfectly working symbian client) or lack features or never ship at all except MS Phone.

    If you dig my posts regarding Sun/Oracle deal, I said things like "why would they undermine openoffice,java,mysql?", now I regret not posting as AC. This message however, is a sure bet. Just wait.

    1. Greg J Preece

      Linux already lags

      The Linux client is already behind the Windows one by a long way, but that's a good thing! The Linux users still get a simple, unbloated client that sits there and does as it's told. The Windows client has become a monster, and the Mac client is no better. I can't think of any features I've ever needed to use that weren't in the Linux version, so I say let it stay that way, and leave the bloat out.

  18. billium
    Troll

    patents

    for trolling

  19. Miek
    Linux

    The clue is ...

    .. that microsoft already have this technology in the form of MSN messenger but most people use Skype, what does that say for MSN messenger and the future of Skype?

    1. Ilgaz

      Call a MSN User (non tech one)

      On Symbian Nimbuzz, we can also "call" MSN people and nobody I tried answered. One even went offline.

      Thing is, they didn't even know such functionality exists (seen the win monster lately?) and they thought... It as kind of a fake/virus thing! When I asked the guy why he went offline, he talked about some virus posing as caller!

  20. Jay 2

    How much?

    Those nasty vultures at SLP et al must be laughing all the way to the bank and then some. I can't stand them, but their tactic seems to have come up trumps once again:

    1) Buy company

    2) ???? -> This usually equates to do nothing aside from cut costs (usually staff) and waiting a bit

    3) Profit immensely

    I wonder what Microsoft have in store for Skype? This probably won't end too well...

  21. John Smith 19 Gold badge
    Gates Horns

    Steve has a little message for all you non Windows Skype users

    You gonna squeal like a pig.

    That is all.

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