11 May Microsoft Purchase Skype in Huge Deal

Microsoft have purchased IP telephony pioneer Skype in a bumper £5.2 billion deal with the company's chief executive Steve Ballmer commented that Skype are "entirely consistent with our irrepressible, forward-looking nature". Some analysts are urging caution, claiming that the situation is reminiscent of the dot.com bubble a decade ago. The purchase stands as the largest ever made by the software giant, with many believing the move is a gamble. Microsoft, who are providers of such services as Microsoft Office and Microsoft Excel, are now under pressue to ensure they get their money's worth out of the deal. Skype was acquired by eBay in 2005, only to be sold on in 2009 after the company failed to pull off the promised integration of Skype phone and video calls into its famous online marketplace. Skype are making similar integration promises with Microsoft products but investors are sceptical.