Thursday, July 7, 2011

Facebook launches video chat with Skype

Facebook will partner with Skype to launch video chat, an action that will give the already globally leading social network another leg up when it comes to connecting people and competing with Google, Reuters reported.

Chief Executive Mark Zuckerberg announced the agreement on yesterday. The deal deepens the company's cooperation with Microsoft, which is in the process of acquiring Skype to expand its web presence.

Facebook users have reached a record of 750 million. According to Zuckerberg, this new service could be a great boost for Skype, which can expect its Web traffic to triple or even quadruple, ABC News reported.

According to Ray Valdes, Gartner analyst, this service will give Facebook members another reason to use the site more frequently and stay longer.

Tony Bates, Skype's chief executive, said the deal is only the beginning of a potentially lucrative partnership.

"For us, this makes a lot of business sense. We get huge reach. In the future we're talking about potentially also having Skype paid products available within the web format we saw here today," Bates added.

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