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Microsoft Buys Skype (11th May, 2011)

Software giant Microsoft has bought the Internet telecommunications website Skype for $8.5 billion. Microsoft hopes to link Skype’s free and low-cost telephone and video services to products like the Xbox 360 game system and its Bing search engine. Industry experts say Microsoft really needs Skype and its 600 million customers to compete with rivals Apple and Google in the video chat market. One analyst Richard Edwards said: “Skype is undoubtedly the product Microsoft needs to stay in the game."

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The Skype deal is one of the largest purchases ever made by Microsoft. Executives say the company needs to expand. It currently has only two main sources of revenue – from its Windows operating system and its Office suite of programmes. The latter is used largely by businesses. Microsoft needs to turn Skype around. In 2010, the company made a loss of $7 million and has a debt of $686 million. Only 12 per cent of its customers use Skype’s Internet-to-land-line pay service. The rest use the free Internet service.

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PHRASE MATCH

Match the following phrases from the article.

Paragraph 1

1.

Software

a.

engine

2

Skype’s free and low-

b.

giant Microsoft

3.

Bing search

c.

chat market

4.

compete with rivals

d.

in the game

5.

the video

e.

cost telephone

6.

Microsoft needs to stay

f.

Apple and Google

 

Paragraph 2

1.

The Skype deal is one

a.

revenue

2

the company needs

b.

Internet service

3.

two main sources of

c.

to expand

4.

used largely by

d.

Skype around

5.

Microsoft needs to turn

e.

of the largest

6.

The rest use the free

f.

businesses


LISTENING GAP FILL

Software giant Microsoft _____________________ Internet telecommunications website Skype for $8.5 billion. Microsoft hopes to link Skype’s _____________________ telephone and video services _____________________ the Xbox 360 game system and its Bing search engine. _____________________ Microsoft really needs Skype and its 600 million customers to _____________________ Apple and Google in the video chat market. One analyst Richard Edwards said: “Skype is undoubtedly the product Microsoft needs _____________________."

The Skype deal is one of _____________________ ever made by Microsoft. Executives say the company _____________________. It currently has only two main sources of revenue – from its Windows operating system and its Office suite of programmes. The latter _____________________ businesses. Microsoft needs to turn Skype around. In 2010, the company made a loss of $7 million _____________________ $686 million. Only 12 per cent _____________________ Skype’s Internet-to-land-line pay service. The _____________________ Internet service.


MULTIPLE CHOICE

Software giant Microsoft has (1) ____ the Internet telecommunications website Skype for $8.5 billion. Microsoft hopes to (2) ____ Skype’s free and low-cost telephone and video services to products (3) ____ the Xbox 360 game system and its Bing search engine. Industry experts say Microsoft really needs Skype and its 600 million customers to compete with (4) ____ Apple and Google in the video chat market. One (5) ____ Richard Edwards said: “Skype is undoubtedly the product Microsoft needs to stay in the      (6) ____."

Put the correct words from this table into the article.The Skype (7) ____ is one of the largest purchases ever made by Microsoft. Executives say the company needs to expand. It (8) ____ has only two main sources of revenue – from its Windows operating system and its Office suite of programmes. The (9) ____ is used largely by businesses. Microsoft needs to turn Skype (10) ____. In 2010, the company made a (11) ____ of $7 million and has a debt of $686. Only 12 per cent of its customers use Skype’s Internet-to-land-line pay service. The (12) ____ use the free Internet service.

1.

(a)

buy

(b)

bought

(c)

buying

2.

(a)

link

(b)

rink

(c)

sink

3.

(a)

likely

(b)

like

(c)

liking

4.

(a)

radius

(b)

routes

(c)

rivals

5.

(a)

analyst

(b)

analysis

(c)

analyze

6.

(a)

video

(b)

console

(c)

game

7.

(a)

deal

(b)

dealt

(c)

dealer

8.

(a)

currant

(b)

currently

(c)

currents

9.

(a)

fatter

(b)

matter

(c)

latter

10.

(a)

around

(b)

down

(c)

through

11.

(a)

lost

(b)

loss

(c)

losses

12

(a)

relax

(b)

other

(c)

rest


SPELLING

Spell the jumbled words (from the text) correctly.

Paragraph 1

1.

Software itnag

2.

video vsircees

3.

utopdsrc like the Xbox

4.

Industry perxets

5.

ptmeeco with rivals Apple

6.

the pdctrou Microsoft needs

 

Paragraph 2

7.

one of the rasglet purchases

8.

the company needs to pxaden

9.

scorsue of revenue

10.

operating ymsets

11.

used legyrla by businesses

12.

12% of its omesctrsu


PUT THE TEXT BACK TOGETHER

Number these lines in the correct order.

1  )

Software giant Microsoft has bought the Internet telecommunications website Skype

(    )

say the company needs to expand. It currently has only two main sources of

(    )

a loss of $7 million and has a debt of $686 million. Only 12 per cent of its customers

(    )

like the Xbox 360 game system and its Bing search engine. Industry experts say Microsoft really

(    )

revenue – from its Windows operating system and its Office suite of programmes. The latter is used largely

(    )

for $8.5 billion. Microsoft hopes to link Skype’s free and low-cost telephone and video services to products

(    )

use Skype’s Internet-to-land-line pay service. The rest use the free Internet service.

(    )

The Skype deal is one of the largest purchases ever made by Microsoft. Executives

(    )

and Google in the video chat market. One analyst Richard Edwards said: “Skype is

(    )

businesses. Microsoft needs to turn Skype around. In 2010, the company made

(    )

needs Skype and its 600 million customers to compete with rivals Apple

(    )

undoubtedly the product Microsoft needs to stay in the game."


WORD JUMBLE

With a partner, put the words back into the correct order.

1.

telephone     and     low     Link     -     Skype’s     cost     free.    

2.

like     Products     system     game     360     Xbox     the.    

3.

say     experts     Industry     Skype     needs     really     Microsoft.    

4.

Apple     Google     Compete     rivals     and     with.    

5.

the     in     stay     to     needs     Microsoft     game.    

6.

the     deal     largest     is     one     The     of     Skype.    

7.

of     It     only     sources     has     main    revenue     currently     two.    

8.

The     businesses     by     largely     used     is     latter.    

9.

Skype     needs     turn     around     Microsoft     to.    

10.

Internet     free     the     use     rest     The     service.    


DISCUSSION (Write your own questions)

STUDENT A’s QUESTIONS (Do not show these to student B)

1.

________________________________________________________

2.

________________________________________________________

3.

________________________________________________________

4.

________________________________________________________

5.

________________________________________________________

6.

________________________________________________________

------------------------------------------------------------------------------

STUDENT B’s QUESTIONS (Do not show these to student A)

1.

________________________________________________________

2.

________________________________________________________

3.

________________________________________________________

4.

________________________________________________________

5.

________________________________________________________

6.

________________________________________________________


WRITING

Write about Skype for 10 minutes. Show your partner your paper. Correct each other’s work.

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________


HOMEWORK

1. VOCABULARY EXTENSION: Choose several of the words from the text. Use a dictionary or Google’s search field (or another search engine) to build up more associations / collocations of each word.

2. SKYPE: Search the Internet and find more information about Skype. Talk about what you discover with your partner(s) in the next lesson.

3. MAGAZINE ARTICLE: Write a magazine article about Skype. Include imaginary interviews with the boss of Microsoft. Read what you wrote to your classmates in the next lesson. Give each other feedback on your articles.

4. WHAT HAPPENED NEXT? Write a newspaper article about the next stage in this news story. Read what you wrote to your classmates in the next lesson. Give each other feedback on your articles.

5. LETTER: Write a letter to a Skype user. Ask him/her three questions about Skype. Give him/her three of your opinions on Microsoft buying Skype. Read what you wrote to your classmates in the next lesson. Your partner will answer the questions you asked.

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