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Market Overview

Facebook Adds Video Calling, Cuts Ties With Skype

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Facebook Inc (NASDAQ: FB) launched a video calling service Monday to the 600 million monthly users of its Messenger App.

Separately, Facebook in recent months has quietly severed its long-standing links with Microsoft Corporation (NASDAQ: MSFT)'s Skype service, according to a report Monday by Business Insider.

The new Facebook video service is available to Messenger users via smartphones using operating systems of both Apple Inc. (NASDAQ: AAPL) and Google Inc (NASDAQ: GOOGL) in 18 countries including the U.S.

In addition to Skype, the new service competes with Apple's FaceTime and Google's Hangout. USA Today called Facebook "late to the dance."

Stan Chudnovsky, Messenger's head of product, told The Wall Street Journal that Facebook has no immediate plans to obtain revenue from the service, nor to add it to its WhatsApp messaging app with 800 million monthly users.

 

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