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August 30, 2005

Microsoft Acquires Teleo, Innovative VoIP Technology Company

Posted by David Hunter at 10:39 PM ET.

Press Release:

Microsoft Corp. today announced it has acquired Teleo Inc., a provider of voice over Internet protocol (VoIP) software and services that enable the placement of phone calls from PCs to traditional phones and that deliver this technology in unique ways through a variety of software and Web applications. Microsoft expects to combine the technology and expertise of Teleo with the existing VoIP investments of MSN to further develop products and services that connect consumers to the people and information that most matter to them. Financial details were not disclosed.

Founded in 2003 and headquartered in San Francisco, Teleo is a privately held company whose initial planned service offering, also called Teleo, was designed to allow customers to use their PC to make phone calls to cell phones, regular phones or other PCs. Through its integration with Microsoft® Outlook® and Microsoft Internet Explorer, the Teleo service was designed to facilitate click-to-call dialing of any telephone number that appears on-screen, for example through a Web site or via search results or e-mail.

John Borland has some analysis in MSN buys into Net calling future including:

Microsoft has its eyes set on something more like Net phone company Skype’s service, however. A key part of Teleo’s technology is focused on making calls from a computer to an ordinary telephone, a feature that company executives said would start finding its way into MSN Messenger before the end of 2005.

Richardson said the Teleo technology would be used primarily within MSN applications, rather than being integrated into the Windows operating system.

Update: The old Teleo web site is already redirected to a page on MSN.

Filed under Acquisitions, Coopetition, MSN, MSN Messenger, Skype, Technologies, VoIP

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2 Responses to “Microsoft Acquires Teleo, Innovative VoIP Technology Company”

  1. Microsoft News Tracker » Microsoft, MCI to offer Windows Live phone calls Says:

    [...] Besides internal Microsoft development, this likely includes the August acquisition of Teleo although it is not mentioned. Interested parties can learn more about Windows Live Messenger at [...]

  2. Microsoft News Tracker » What’s Microsoft doing with VoIP? Says:

    [...] After Microsoft acquired VoIP technology company Teleo last August, there was lots of speculation about Microsoft’s VoIP plans. Olga Kharif at BusinessWeek provides a detailed update on the current state of play in Voice over Microsoft Protocol? Some excerpts: Microsoft has yet to make public its plans for Teleo, but BusinessWeek Online has learned that the software maker plans to weave Teleo’s bells and whistles into a number of applications, such as Hotmail and instant messaging. Microsoft also hopes to integrate VoIP into its new paid-search platform, which is being rolled out worldwide, as well as a planned classified-ad service. [...]

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