EU approves Microsoft's Skype takeover

2011-10-07 20:08
Brussels - European anti-trust officials approved US technology giant Microsoft's $8.5bn takeover of internet voice and video leader Skype on Friday.

"The deal would not significantly impede effective competition across the single European market" of half a billion consumers, the European Commission said in a statement.

Microsoft's purchase is aimed at boosting its presence in an online arena dominated by Google and Facebook, both of whom were also believed to have been interested in Skype alongside computing giant Cisco.

Skype users can make low-cost or free phone calls over the internet using their computers or smartphones. Skype bypasses the standard telephone network by channelling voice and video calls over the web.

One of the top applications on Apple's iPhone and on smartphones powered by Google's Android software, Skype has some 170 million users who will now be able to "Skype" using Windows-powered phones or even Xbox game consoles.

"In the area of consumer communications, the investigation found that the parties' activities mainly overlap for video communications, where Microsoft is active through its Windows Live Messenger," the European Union executive said.

"However, the commission considers that there are no competition concerns in this growing market where numerous players, including Google, are present.

"For enterprise communications, the investigation confirmed that Skype has a limited market presence for these products and does not compete directly with Microsoft's enterprise communication product Lync, which is used mostly by large enterprises," it added.

Skype was founded in 2003 and acquired by online auction giant eBay in September 2005. It was sold to an investment group led by Silver Lake in November 2009 in a deal that valued the company at $2.75bn.

Microsoft's biggest acquisition until now had been its 2007 buy of digital marketing firm aQuantive for $6.3bn. Microsoft unsuccessfully tried to buy Yahoo! in 2008 for $47.5bn.

Read more on:    skype  |  microsoft
NEXT ON NEWS24X

linking and moving

2015-04-22 07:36

SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
5 comments
Add your comment
Comment 0 characters remaining

Inside News24

 
/News
 

Top 10 richest musicians of all time

Check out the gallery to find out who they are!

 
 

Luxury living

10 of the most expensive things that will leave your jaw hanging!
Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Horoscopes
Aquarius
Aquarius

There is a tendency towards setting your expectations too high which will result in disappointment. Try not to let your thoughts...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.