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In one of its largest acquisitions ever, Microsoft announced on Tuesday which it would buy Skype Global for $8.5 billion in cash.In buying Skype, Microsoft is purchasing the leader in internet voice and video communications.

Skype is estimated to possess 107 million users per month connected for longer than 100 minutes a month on average. This large active base of users is of great value to Microsoft, as well as since Skype has developed into a verb, acquiring it only gives Microsoft more access into the homes and lives of more users worldwide.

Microsoft definitely needs to catch up with Google when it comes to being the most effective search engine in the world, and Skype being way ahead of Google, puts Microsoft in a great position to out beat its rival.

In talking about the longer term of Skype once under Microsoft’s belt, Microsoft’s CEO said they are thinking about expanding Skype’s business and infuse its voice-and-video technology across the board of Microsoft products, from consumer offerings like Xbox to its Office productivity software.

The acquisition of Skype comes in light for the fact that the company was running into a loss, estimated at $7 million owed largely on account of it offering its services to its users absolutely free. However, investors in the brand say they are hopeful that things will receive better following the acquisition by Microsoft.

It wouldn’t be wrong to anticipate Skype to get a brighter future reading from Microsoft’s deal-making history and acquiring of smaller companies and taking in of their technical teams to work on existing products like Windows.

At the same time, Microsoft has seen considerable deals that may not have proven to be the most lucrative for the company. Microsoft has acquired SAP and aQuantive in the past for large sums like $50 billion and $6 billion respectively which raised questions of being overpaid.

Microsoft’s acquisition is definitely the second time a technology giant has acquired Skype with eBay trying to buy the company in 2005, whose acquisition didn’t come out successful.

Skype was sold several years later to a varied group of investors led by Silver Lake Partners, Index Ventures, Andreessen Horowitz and the Canada Pension Plan Investment Board.

The speculation about the near future of Skype has finally ended with Microsoft acquiring it. The company had been planning an initial public offering but delayed its debut last year, encouraging rumors that it would be sold to a company like Facebook, Google or Cisco Systems.

In a positive note confirming the deal between Microsoft and Skype, Tony Bates, who will now be President for the newly found Microsoft Skype division said that both companies share the vision of bringing software innovation and products to their customers. Right after the acquisition Skype is hopeful to speed up its plans to extend its global community and convey about new means of communication and collaboration.

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