Skype buys messaging firm GroupMe for $85 million

Skype has announced plans to acquire GroupMe, a company that provides a group messaging application that works across any mobile operating system. GroupMe co-founder Steve Martocci said in a statement that Skype plans to integrate GroupMe's messaging functionality into its current crop of mobile VoIP offerings.

The application functions like a private chat room, enabling users to send messages, set up conference calls, and share their location among a selected group of contacts.

"The GroupMe team has created an incredibly sticky group messaging experience that works across mobile devices and platforms, making this a perfect addition to the voice, video and text products in the Skype family," said Skype chief executive Tony Bates in a statement on Sunday.

All Things Digital reported over the weekend that sources close to the transaction expect Skype to pay around $85 million for GroupMe. GroupMe's application represents yet another OTT (over-the-top) service that has the potential to erode operators' revenues if they fail to make their own offerings more compelling.

Research firm Analysys Mason recently warned that migration from operator-provided services to third party applications could cause a typical mobile operator's revenue to decline by up to 17% over a five year period.

Software giant Microsoft is currently in the process of buying Skype for $8.5 billion, and is expected to finalise the purchase by October.

---