World
        

Economy

Facebook lets its 750 million users video chat

Updated: 2011-07-07 07:27

(Agencies)

Twitter Facebook Myspace Yahoo! Linkedin Mixx

PALO ALTO, Calif. - Facebook will integrate Skype video chat into its social networking service, striking a deal to cement its role as a hub for communications.

Facebook lets its 750 million users video chat
Skype CEO Tony Bates (L) and Facebook CEO Mark Zuckerberg hold a news conference at Facebook headquarters in Palo Alto, California July 6, 2011. Zuckerberg announced Wednesday that Facebook will integrate Skype videoconferencing into its social networking service, striking a deal to cement its role as a hub for communications. [Photo/Agencies]

The agreement, announced by Facebook Chief Executive Mark Zuckerberg at the company's Palo Alto, California, headquarters on Wednesday, deepens its cooperation with Microsoft Corp, which is in the process of acquiring Skype for $8.5 billion.

Zuckerberg said Facebook now has 750 million users. The new service, rolling out from on Wednesday, could be a huge boost for Skype, which currently has about 145 million regular users.

Related readings:
Facebook lets its 750 million users video chat Google+ challenges Facebook in new battle
Facebook lets its 750 million users video chat Google targets Facebook to debut new SNS
Facebook lets its 750 million users video chat Facebook overtakes Microsoft in UK
Facebook lets its 750 million users video chat Leaving Facebook? Not that easy

"This is opening up a whole new user base for Skype," said Kim Caughey Forrest, senior analyst at Fort Pitt Capital Group. "The core of Skype users are people that have extraordinary circumstances -- they have a computer but no money, or they have friends and family on a different continent. This could ultimately grow the number of Skype numbers that use it within the United States."

Facebook, which also unveiled a group messaging function, adding to its existing one-to-one text chat, is striking back at Google Inc, which last week turned up the competitive heat by introducing a social networking service dubbed Google+.

While many of Google+'s social networking features are similar to those already available on Facebook, Google has attracted praise for its videoconferencing function, which allows up to 10 people on the service to participate in a video call.

Facebook's new offering, which initially is limited to one-to-one video chat, could benefit Microsoft, which owns 1.6 percent of Facebook and announced its purchase of Skype in May.

The world's largest software company is trying to muscle in on Google's turf with its Bing search engine, and is hoping Skype will help it broaden its portfolio of Web-based properties.

Skype, which was founded in 2003, allows people to make Internet phone calls and video calls at no charge and has also developed premium services.

Microsoft shares rose 0.9 percent to $26.26 on Nasdaq, while Google's rose 0.87 percent to $536.64.

   Previous Page 1 2 3 4 5 Next Page  

Specials

90th anniversary of the CPC

The Party has been leading the country and people to prosperity.

My China story

Foreign readers are invited to share your China stories.

Green makeover

Cleanup of Xi'an wasteland pays off for ancient city

Pret-a-design
Mom’s the word
Big win