Microsoft to buy Skype

If you’re wondering why everyone is reading the news today and going “Awwww, man!” it’s because Microsoft is planning to buy Skype, the voice/video streaming service, for $8.5 billion dollars. MS was apparently attracted when they heard about Skype’s security vulnerabilities and their new, unpopular interface, and felt they’d fit right in.

But I kid.

So, what is this all about? Facetime. MS is, no doubt, planning to buy the popular service, integrate it with Windows Phone 7 (and their forthcoming tablet OS) so they have a built-in user base.

The big question in my mind is will they change the name? Will it become Microsoft Skype? MS Skype? Or more likely, Windows Phone 7 Skype Audio/Video Chat Service for Windows Phone 7 Brought To You By Microsoft and you have you say it that way every single time?

But again, I kid.

The really big question is will MS be able to take a popular (though not profitable) outside service and use it successfully (Hotmail, Bing), or will it disappear down the memory hole (The Kin).

So, what does this mean for Apple? Facetime is one of the marquee features of the iPhone, though I know of few people who actually use it, partly because it’s still not a cross-platform application. The beauty of Skype is that you can use it on any device either for video, audio, or text chat. This is why I imagine MS wants it, perhaps so they can generate their own heartwarming commercials of people talking over video chat, sharing moments.

Let’s just hope it’s not Bill Gates and Jerry Seinfeld.

Via [Wall Street Journal]