Microsoft’s 5 Biggest Acquisitions of All Time

4. Skype Technologies

Date of Purchase: May 2011

Amount Paid By Microsoft: $8.5 billion   

Skype Technologies is still one of the most recognizable brands across the world, especially with regards to wireless social connections. The pandemic has served to highlight the importance of companies like Skype to the overall functioning of business. It is hard to believe that Microsoft Corporation (NASDAQ:MSFT) bought Skype for just $8.5 billion more than a decade ago. The deal was worth 32 times the operating profits of Skype and the largest Microsoft Corporation (NASDAQ:MSFT) acquisition at the time. 

Skype Technologies started out as a business in 2003 and was bought by eBay in 2005 for $3.1 billion. eBay sold a majority stake in Skype to a private investment firm in 2009 for more than $1 billion less than the purchase price. The purchase was also a little confusing since Microsoft Corporation (NASDAQ:MSFT) already had software that offered much of what Skype did, which included live chats, video conferencing, and a large user base. However, in the years since, Microsoft Corporation (NASDAQ:MSFT) has phased those software out for Skype.