Microsoft buys VoIP startup Teleo

Microsoft has acquired VoIP startup Teleo. Teleo offers a peer-to-peer VoIP service that looks a lot like Skype. Microsoft said it plans to incorporate Teleo's technology into its MSN Messenger platform, allowing MSN Messenger to compete with Skype and other P2P VoIP services. Financial details of the deal were not released.

This is the third major VoIP related announcement from a major IT company in the last week. Last week Google launched Google Talk, the company's new instant messenger and P2P VoIP solution. Microsoft last week also launched the latest version MSN Messenger. Insiders are split on whether this news will help or hurt leading P2P VoIP service provider Skype. Some critics claim that Skype's valuation could suffer due to the growing competition. Others claim that since IT giants such as Microsoft, Yahoo, and Google are copying it, investors and financial analysts could raise their estimates for Skype.

For more on Microsoft's deal for Teleo:
- read this article from the Seattle Post-Intelligencer

PLUS: Skype says it's not for sale. Article