REDMOND, Wash.-Microsoft Corp. said late Tuesday it is buying into the Internet-calling arena with the acquisition of 2-year-old startup Teleo Inc.
The software behemoth said it will use Teleo’s Voice over Internet Protocol technology to expand voice capabilities to its instant messaging service, MSN Messenger. Financial terms of the deal were not disclosed.
With the move, Microsoft becomes the latest giant to join the rush to provide Internet calling services. Google launched a voice/instant messaging service last week, and Yahoo! added voice to its IM offering in May. The companies hope to keep pace with Skype and Vonage, two VoIP service providers that have gained substantial traction in the nascent Internet-based calling industry.
“Teleo has great technology to deliver superior VoIP quality and an excellent overall customer experience,” said Blake Irving, a Microsoft corporate vice president. “This acquisition opens up infinite opportunities for Microsoft to enable even more relationship-centric communications experiences for our customers in the future.”
