Microsoft Skype Case Study

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Microsoft is an American technology company which develops, manufactures, licenses, supports and sells computer software, system, consumer electronics, and services. In recent decade, it has increasingly diversified from the operating system market and has made a number of corporate acquisitions to grow the company such as Mojang, aQuantive, Nokia, LinkedIn and lot of others. Some of them added valuable new business software to Microsoft's portfolio. Some of them also cause huge loss of Microsoft or some problems but not failure. Microsoft/Skype is one of that which also has some mistakes in acquisition. In 2011, Microsoft announced the deal to acquire Skype, the Internet communication company, for 8.5 billion. Even though, Firstly, the…show more content…
For example, If Google acquires Skype, it would be disastrous for Microsoft. Imagine if Google owned Skype and integrated it with its functions such as Google Apps, Gmail, Google Talk, and Google Voice. Even if Microsoft doesn't do a good job of integrating Skype into its own offerings, it can take Skype away from the competitors as well. On the other hand, this deal was regarded to be monopolistic. Two years later, Cisco opposed at the Luxembourg General Court about the European Commission’s approval of the $8.5 billion deal in 2011. Microsoft was not required to make any allowance for buying the Internet video and voice messaging company, which Cisco argued that Microsoft/Skype have an unfair advantage because voice and video via internet have become a vast market, with many consumers and corporates abandoning traditional landlines and mobile and it is an area in which Cisco had hoped to expand its presence. Cisco’s lawyer told judges that “The merger created an effective monopoly and condemned competitors to a

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