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Why DID Microsoft Purchase Skype?

Microsoft Purchased the online chat service known as Skype in order to assert their dominance in the VOIP market, said a source involved in the actual deal between the two industry giants. Skype has an enormous peer-to-peer video chat following and offers Microsoft a huge thrust into the communications space. The questions looms after several years without a major acquisition, why $8.5 billion on Skype?

What does Skype have to offer Microsoft besides video chat and a massive audience?

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This article was originally published on May 13th, 2011

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