You can call it a vital move by Microsoft to fire up its sinking online services division. Microsoft is about to execute an $8.5 billion deal to buy Skype Technologies SA to add Internet-calling tools to its online services.CEO Steve Ballmer seems to have a plan to use Skype's services in a bid to lure Web users and narrow Google Inc.'s lead in Internet advertising. This deal is going to be Microsoft's largest ever deal dwarfing its previous $6 bn for AQuantive.
Skype, the world's largest provider of international calling with 663 million global users, will surely help Ballmer in reviving Microsoft's online services division, which had an operating loss of $726 million in the last three months whereas the web giant Google dominated Web search and related advertising.
Skype was founded in 2003 by Niklas Zennstrom and Janus Friis with investment from giants like EBay Inc. and Andreessen Horowitz. In 2005, it was sold to EBay itself which was based in San Jose, California for $2.6 billion.
Skype since its inception has been leading video call service provider in the world and it is currently developing premium services such as group video calling and pursuing corporate accounts.
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