Don`t believe the Skype

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The online telephone and messaging service Skype has just been bought by Microsoft for 5.2 billion pounds making it Microsoft`s biggest acquisition.

Skype has over 660 million users and, like Google, it has entered common parlance to become a verb in its own right. Skype-ing someone happens 100 million times a month with users taking advantage of Skype`s free calls to other users, free conference and video calls. While Skype has succeeded in attracting users it has yet to make a lot of money.

Whether Microsoft can make the business return big profits is the next question.

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