Microsoft buys Skype for $8.5 Billion

The Wall Street Journal broke the story that Microsoft buys Skype for about $8.5 Billion. BoomTown reports that they have confirmed that Microsoft announces the Skype acquisition today. So why is Microsoft buying Skype? Is it just because so Google can't have it? Skype does fit into Microsoft's Windows Phone and Windows Live offering, but they could also code their own P2P voice and video service or buy a smaller technology play.

Microsoft gains the huge Skype user base, but now they also will have to service and take Skype to the next level competing with other similar services. We will learn the motivation behind the Skype purchase as soon as Microsoft is issuing the press-release at 5am this morning. Stay tuned.

$8.5 billion is a huge bet. I am not sure if Microsoft bought a winning ticket.

Updates

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