InsideMicrosoft

Microsoft Looking To Purchase Ustream?

Valleywag posted a rumor that Microsoft was looking to acquire Ustream.TV, a popular service for streaming live video. Many web users (including myself) use Ustream to show live webcam video to friends or website visitors, and a growing number of events are being broadcast by Ustream thanks to partnerships. This summer, the Republican National Convention will stream live on Ustream, a major coup that will get the startup a lot of attention.

There is no question why Microsoft would be interested in Ustream. The rumored asking price is $50 million, relatively cheap for a feature that YouTube doesn’t have and could provide a lot of users and buzz to MSN Video/Soapbox. Microsoft wants to be a player in the fast-growing online video market, and Ustream could be the killer app to elevate MS’s online video offerings into the wider public consciousness.

Think about it: YouTube for video clips, MSN Ustream for live video. Could definitely work.

I’ve been hearing rumblings that Microsoft is already building the next version of MSN Video and Soapbox, one that runs on Silverlight, probably before this summer. When complete, online video, including embedded shared videos, will become a major part of Microsoft’s strategy for rich content on the web and the online developer community. Buying Ustream could be a smart way to improve not just Microsoft’s online video aspirations, but as a means of bolstering Microsoft’s ultimate goal of luring developers to its platforms.

February 11th, 2008 Posted by Nathan Weinberg | Soapbox, MSN | 2 comments