The giant wheels are in motion for Skype to become Microsoft’s largest ever acquisition at $8.5bn (£5.2bn). Luxembourg-based Skype has 663 million global users but doesn’t make a whole lot of money, so what is in it for Microsoft?
Well Microsoft’s chief executive Steve Ballmer summed it up: "Skype is a phenomenal service that is loved by millions of people around the world.”
So in truth, they are buying into potential, and it is huge potential if you consider what could be achieved if the Skype software is married up with the Xbox Kinect and an HD television set.
For home use, we could potentially be talking home schooling or even patient care delivered remotely and in vision. For business, Microsoft could potentially challenge the dominance of firms like Cisco and Polycom.
One major stumbling block has to be overcome first though; how do you marry an open voice/video-over-the-internet service with a company notorious for bureaucracy?
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