Microsoft's Acquisition of Skype: A Strategic Move to Build Brand Buzz and Thwart Competition

In May 2011, Microsoft announced its acquisition of Skype for a whopping $8.5 billion. The move was met with skepticism by some, who questioned the logic behind buying a company that specialized in video conferencing and instant messaging. However, as it turns out, the purchase was a strategic move to help build buzz around the Microsoft brand and prevent competitors from getting their hands on the popular platform.

One of the key reasons Microsoft had to buy Skype was to keep it away from its arch-rival Google. Imagine if Google owned Skype and integrated it with its own suite of services, including Gmail, Google Talk, and Google Voice. The result would have been a disaster for Microsoft, as it would have given Google an unprecedented level of control over the communication landscape.

By acquiring Skype, Microsoft was able to prevent this scenario from playing out and ensure that its own brand remained at the forefront of the communication industry. Additionally, the deal allowed Microsoft to integrate Skype into its own operating system, giving Windows Phone 7 capabilities that neither Android nor iOS can match.

The acquisition has also had a positive impact on Windows Phone 7, which continues to lag behind its competitors in terms of market share. While the deal with Nokia will certainly help boost sales, it's unclear how successful this partnership will be in the long run. In contrast, the Skype purchase may help Microsoft achieve its goal of making Windows Phone 7 a more attractive option for consumers.

In conclusion, Microsoft's acquisition of Skype was a strategic move to build buzz around its brand and prevent competitors from getting their hands on the popular platform. While some have questioned the logic behind the deal, it's clear that the purchase has given Microsoft a significant competitive advantage in the communication industry.

Skype microsoft acquisition