Still Think Microsoft Corporation (MSFT) Overpaid for Skype?

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Facebook is the most intriguing competitor for Skype, in large part because of its partnership with Microsoft. Microsoft provides Facebook users’ out-of-network searches using Bing, which doesn’t pose a conflict, at least until the full capabilities of Facebook’s Graph Search come to fruition. But Facebook’s Jan. 16 announcement of its new iOS Messenger domestic calling feature raises all sorts of questions. With over a billion users, Facebook can throw some serious weight around. Skype may be the leader in VoIP services today, but Facebook and all those users can’t be overlooked.

The market for Skype is new enough that Microsoft can find more ways to maximize its revenue potential, particularly as the service is utilized by more commercial customers. And news that Microsoft is going to step-up its scheduled transition for its Messenger customers to shift to Skype should give the already growing service a shot in the arm.

In the meantime, Microsoft’s new Windows 8 will provide it the opportunity to seamlessly meld Skype with search, smartphones, tablets, Office 365, and a host of other services, into a nice, tidy package. With incredible growth and massive potential, Microsoft shareholders will find the $8.5 billion price tag for Skype might not have been as bad an idea as they had originally thought, after all.

The article Still Think Microsoft Overpaid for Skype? originally appeared on Fool.com and is written by Tim Brugger.

Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool recommends Facebook and Google. The Motley Fool owns shares of Facebook, Google, and Microsoft.

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