<html><head><style type='text/css'>p { margin: 0; }</style></head><body><div style='font-family: Arial; font-size: 12pt; color: #000000'><span>TCLUG,<br>It was in the news today, see article below, that Microsoft has purchased Skype.<br>Being that Skype has gone to the Dark Side :-), Is there another video conferencing alternative to Skype that could be used??? Linux based. Server Based???<br>Tom<br><br></span>
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<h1>Microsoft inks $8.5 billion Skype buy in Web shift</h1>
<div class="photo"><img src="http://www.reuters.com/resources/r/?m=02&d=20110510&t=2&i=410407642&w=250&fh=&fw=&ll=&pl=&r=2011-05-10T123957Z_01_BTRE7490B6I00_RTROPTP_0_SKYPE" alt="Photo" border="0">
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<div class="printtimestamp">8:55am EDT</div>
<p>By <a href="http://blogs.reuters.com/search/journalist.php?edition=us&n=nadia.damouni&">Nadia Damouni</a> and <a href="http://blogs.reuters.com/search/journalist.php?edition=us&n=bill.rigby&">Bill Rigby</a></p>
<p>NEW YORK (Reuters) - Microsoft Corp plans to buy Internet phone
service Skype for $8.5 billion, a rich price as it seeks to regain
ground on growing rivals such as Google Inc.</p>
<p>Microsoft's interest in the money-losing but popular service
highlights a need to gain new customers for its Windows and Office
software. Skype has 145 million users on average each month and has
gained favor among small business users.</p>
<p>Skype delayed plans for an initial public offering expected to raise
$1 billion. It has been looking at other options, including tie-ups with
Facebook and Google. Such a deal was seen as valuing Skype at $3
billion to $4 billion.</p>
<p>The Luxembourg-based company, which allows people to make calls at no
charge but has also developed premium services, would give Microsoft a
foothold in the potentially lucrative video-conferencing market as
businesses shift to lower-cost ways of communicating.</p>
<p>Skype could be combined with Microsoft software such as Outlook to
appeal to corporate users, while the voice and video communications
could link to Microsoft's Xbox live gaming.</p>
<p>Longer-term, Skype would offer Microsoft another route to develop its
mobile presence, an area it has already put more energy and resources
into as PC usage comes under threat.</p>
<p>Skype is set to become a new business division within Microsoft with
Skype Chief Executive Tony Bates in charge and reporting directly to
Microsoft CEO Steve Ballmer, Microsoft said.</p>
<p>"It's a strategic asset and a defensive move," said BGC Financial
analyst Colin Gillis. "If they can put it on Windows 8, it gives them an
advantage. It helps them in the tablet market."</p>
<p>The Skype deal is the biggest in the 36-year history of the world's
largest software company. It was first reported late on Monday by tech
blog GigaOM.</p>
<p>The $8.5 billion price tag was a surprise. Although the sum would not
stretch cash-rich Microsoft, some said it was high for a company whose
ownership has changed several times during its relatively short life.</p>
<p>"In this atmosphere of Internet Bubble 2.0, picking up an
unprofitable online company for roughly 10 times sales probably seems
downright cheap,"" Shanghai-based Michael Clendenin, managing director
of consulting firm RedTech Advisors, said.</p>
<p>"But if you consider (it) was just valued at about $2.5 billion 18
months ago when a chunk was sold off, then $8.5 billion seems generous
and means Microsoft has a high wall to climb to prove to investors that
Skype is a necessary linchpin for the company's online and mobile
strategy," he added.</p>
<p>Skype, which was formed in 2003, was bought by eBay Inc in 2005 for
$3.1 billion. Last year it had in $860 million in revenue but posted a
net loss of $7 million, according to data in its initial public offering
filing.</p>
<p>In 2009, eBay sold a majority stake in Skype to an investor group
including Silver Lake, the Canada Pension Plan Investment Board and
Andreessen Horowitz for $1.9 billion in cash and a $125 million note.
EBay retained about a third.</p>
<p>(Additional reporting by <a href="http://blogs.reuters.com/search/journalist.php?edition=us&n=megan.davies&">Megan Davies</a>, Bill Rigby and <a href="http://blogs.reuters.com/search/journalist.php?edition=us&n=sinead.carew&">Sinead Carew</a>, <a href="http://blogs.reuters.com/search/journalist.php?edition=us&n=sakthi.prasad&">Sakthi Prasad</a> in Bangalore, Clare Jim in Taipei and <a href="http://blogs.reuters.com/search/journalist.php?edition=us&n=melanie.lee&">Melanie Lee</a> in Singapore; Tarmo Virki in Helsinki and Nicola Leske in Frankfurt; Writing by <a href="http://blogs.reuters.com/search/journalist.php?edition=us&n=alexandersmith&">Alexander Smith</a>; Editing by Louise Heavens and <a href="http://blogs.reuters.com/search/journalist.php?edition=us&n=derek.caney&">Derek Caney</a>)</p>
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