News Analysis: With approval by the Federal Trade Commission, Microsoft's $8.5 billion buyout of Skype is a step closer to completion. If the deal clears final regulatory review by the U.S. Department of Justice, it could deliver benefits for multiple stakeholders.
The U.S. Department of Justice
recently approved Microsoft's $8.5 billion bid for Skype, putting the
software giant a big step closer to finally closing the deal for the VOIP
provider. With this crucial regulatory approval, Skype
is on track to become the Microsoft Skype Division and be led by its current CEO, Tony
Bates.
Now the debate on whether or not
the deal is good for stakeholders, including both companies, shareholders, consumers, and others, has fired back up. Some say Microsoft's bid is bad
news for users around the globe and might just hurt the software giant over the
long term.
Others
say it was a smart move on Microsoft's part and should benefits most
stakeholders. Though both sides make a compelling argument, full inspection of
the deal reveals that Microsoft made a smart move by acquiring Skype. Here are
the reasons why.
Read
on to
find out why Microsoft's Skype acquisition is good for everyone.
1. It improves Windows Phone 7
One
of the first assurances Microsoft made following its announcement that it would
acquire Skype was that the VOIP service would be integrated into Windows Phone
7. Microsoft's mobile platform has not caught on with consumers, and iOS and
Android have been performing quite well. With deep Skype integration, current
Windows Phone 7 owners will benefit and Microsoft itself might be able to
attract more users to its platform.
2. It was on its way to integration anyway
Skype
is undoubtedly a fine service, but when one considers its potential as an
option integrated into other platforms, including mobile devices and consumer
goods, it becomes all the more appealing. Simply put, Skype is better when it's
an additional feature in an already appealing product. Skype knows that. Microsoft
knows that. Even Skype users know that. Look for Microsoft to continue to
integrate Skype across a wide array of products going forward.
3. It's all about Kinect
When
Microsoft launched its motion-gaming peripheral, Kinect, last year, the device
was slight on features but big on potential. With Skype's help, it might just
be one of the most appealing peripherals in the living room. After all,
Microsoft says that it will integrate Skype with Kinect,
allowing people to engage in video chatting from the living room with other
users. Kinect and Skype will be the killer combo in the living room over
the next several years, and Microsoft and consumers will benefit from that.
4. It's like FaceTime, but better
Apple's
FaceTime video-chatting service is arguably the best in the business right now.
Users on iOS-based devices and Macs can engage in video chats at no charge. So
far, Microsoft hasn't been able to respond. But with Skype's help it will,
potentially making the software giant's offering much better than Apple's. With
Skype, Microsoft can offer a video-chatting feature that works across
platforms, including Windows PCs, Windows Phone 7 devices, Macs and Kinect,
among others. Skype's video chatting doesn't have the limitations that FaceTime
does, and as long as Microsoft keeps that in place, everyone will benefit.
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