Microsoft has closed on a reported 8 Billion dollar deal for the acquisition of the internet phone service Skype. The cost of this deal has shocked analysts who think it would be a substantial overpayment for the company.
The acquisition will be Microsoft’s biggest, ahead the deal to acquire online advertising company aQuantive in 2007 and would bring it 660 million users worldwide while giving it a foothold in voice and video communications. Analysts suggested the service could be integrated into existing Microsoft products such as its Xbox 360 games console and Kinect gaming systems, or even into its flagship Office product to let users collaborate more effectively.
Speculation has been rife in Silicon Valley for months about Skype’s future. Rumors last week suggested Facebook, Google or Cisco Systems were interested in acquiring it to fold into their own services.
Analysts have favored the idea of the deal, but questioned whether it could ever be worth the price. Skype has debt, which Microsoft would assume in this purchase.
