MySpace embeds Skype telephony in its IM service

MySpace, the Web’s largest social network, and Skype, a provider of phone calling over the Internet, have announced a new partnership, under which the MySpace messaging users will be able to make free telephone calls to each other through Skype’s telephony network.

With their partnership, the two companies hope to create the world’s largest online voice-connected community.

MySpace, the popular social network which is owned by Rupert Murdoch's News Corp., announced Tuesday that it has entered into a deal with Web-calling leader Skype to enable its members make Internet phone calls using Skype’s voice communications technology and its existing instant message program that allows members to chat to one another.

By merging its MySpaceIM (instant messaging) with Skype, the Los Angeles based top social network portal is apparently leveraging its social-networking hub to boost the revenues of the website.

“MySpaceIM with Skype is a truly groundbreaking product integration and partnership,” said Chris DeWolfe, co-founder and CEO of MySpace. “Skype has the leading technology in Internet voice communications and an enormous international user base that we’re thrilled to connect with our existing community. Our network has no geographical boundaries—Internet calling is the natural next step for how our members communicate with each other.”

Skype, which was acquired by Ebay in 2005 for $2.6 billion, said it will integrate its free, voice-calling capability with the social-networking hub and one of the most popular sites on the Internet, MySpace, as part of the deal.

The internet calling firm Skype said that the deal would allow users to link their MySpace profiles and other related information to their Skype account, and will provide MySpace messaging users access to Skype voice communications.

“Both MySpace and Skype have become a part of people’s lives by bringing people closer together, no matter where they live in the world. This partnership reiterates that Skype is the platform of choice for Internet communications because we make it simpler and easier for people to place free calls to one another whether they are on Skype or within the MySpace network,” said Michael Van Swaaij, interim CEO of Skype.

Coming November, the MySpaceIM users will be able to have access to Skype calling services without having to download any additional software. Calls between MySpace and Skype members will be free, similar to Skype’s traditional service. But, a fee would be charged if they place calls to mobile phones and land lines, as well as use voice mail and call forwarding services.

Revenue from the fees will be shared by both the companies, though specific terms were not disclosed. Skype will oversee the billing.

In a joint statement, the two companies said they will launch the plan in 20 countries where MySpace has localized communities. There are more than 110 million monthly active users of MySpace and around 25 million installed users of MySpaceIM, while Skype has 220 million registered users.