10 May 2011 | Author: N. Hamilton Media copywriter

Going twice … Microsoft set to outbid Facebook and Google with $8bn Skype spend

After pairing Bing with Yahoo! and then BlackBerry, and ahead of formally partnering with Nokia in a bid to challenge Google's search and smart phone market shares, Microsoft's set to miff Mountain View even further by outbidding both Google and Facebook for ownership of web communications firm Skype.

While Google and Facebook looked set to spend up to $4 billion in a bid to own or partner with Skype, the Wall Street Journal reports Microsoft could quickly outbid the pair with a massive $8 billion Skype spend.

According to the WSJ, tech sources believe a Skype deal could be signed, sealed and announced as early as Tuesday.

However, with Skype's initial public offering estimated at just $1 billion and both Google and Facebook bidding at $4 billion, tech pundits have begun to wonder just why Skype's worth $8 billion to Microsoft.

While Google could use Skype to bolster its social agenda and Facebook could use the firm to develop its own instant messaging and video conferencing offerings, Microsoft could use Skype to strengthen its existing Lync comms product and to diversify its revenue streams from Office software to digital comms.

What's more, the WSJ said Microsoft could integrate Skype into its mobile software in an effort to oust Android and Apple from their positions of smart phone dominance.


Microsoft, Bing, Yahoo! Bing-hoo!, BlackBerry, Bing-Berry, Facebook, Google, Twitter, Skype, social, social search, Skype-soft, Apple, smartphones

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