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Edition: U.S. Article Comments (0) Follow Reuters Facebook Twitter RSS YouTube Read At least three killed by tornadoes in Arkansas 9:14am EDT Elizabeth Smart kidnapper could face life in prison 8:48am EDT HTC CEO says Windows Mango phones in development 8:43am EDT Netanyahu Congress speech raises few hopes 5:49am EDT Warning: Walking on a Florida street may be dangerous 4:26am EDT Discussed 327 Obama and Netanyahu face tense meeting on Mideast 126 As hours tick by, ”Judgment Day” looks a dud 105 Broadcaster silent as Judgment Day hours tick by Watched Scientists revive ancient spider in stunning 3D detail Tue, May 24 2011 Deadly Missouri tornado captured on video Mon, May 23 2011 Funnel cloud touches down in Oklahoma 4:31am EDT Skype founder sees upside for Microsoft after deal Tweet Share this By Leila Abboud PARIS (Reuters) - Skype founder Niklas Zennstrom said Microsoft could capitalize on its $8.5 billion acquisition of the Internet calling service by expanding into mobile and improving video call quality. "Skype's full potential... Email Print Related News Sarkozy's Web initiative faces reality check Tue, May 24 2011 Top quotes from the Global Technology Summit Wed, May 18 2011 SK Telecom eyes $1.8 billion in LTE investments Wed, May 18 2011 Sony begins restoring PlayStation after security breach Sun, May 15 2011 Google launches Chrome PCs, takes on Microsoft Wed, May 11 2011 Analysis & Opinion IBM looks set to sustain march on tech rivals Tech wrap: Microsoft carts out Mango phone OS Related Topics Technology » Media » Skype co-Founder Niklas Zennstrom attends a photocall in the Westbury Hotel to mark the opening of Founders in Dublin October 28, 2010. Credit: Reuters/Cathal McNaughton By Leila Abboud PARIS | Wed May 25, 2011 9:43am EDT PARIS (Reuters) - Skype founder Niklas Zennstrom said Microsoft could capitalize on its $8.5 billion acquisition of the Internet calling service by expanding into mobile and improving video call quality. "Skype's full potential hasn't been realized yet," said Zennstrom in an interview at the e-G8 forum in Paris, saying improvements in networks and devices such as smartphones meant the experience of using the service was still getting better. "I think that Microsoft has a huge opportunity to integrate it into a lot of their different services," said the Swedish entrepreneur and venture capitalist. Zennstrom, who along with partner Janus Friis started Skype in 2003 and grew it into an online giant with 145 million users a month, no longer has a management role at Skype and will sell all his shares once the deal with Microsoft closes. Asked how Microsoft could incorporate Skype into its business, Zennstrom declined to provide specifics, adding that it was up to the software giant to comment. "Of course they have so many different assets. If they do a good job integrating Skype, the company can grow even more." Investors initially questioned the wisdom of Microsoft's acquisition, especially its high price tag. Its shares are down more than 6 percent since the deal was announced. Microsoft could combine Skype with its software such as Outlook to appeal to corporate users, while the voice and video communications could link to Microsoft's Xbox live gaming. Skype also would offer Microsoft another route to develop its mobile presence, an area into which it has already put more energy and resources -- for example through a partnership with Nokia -- as PC usage comes under threat. Zennstrom said he thought the service was entering a second phase -- focused on mobiles and video -- after having started out as simply voice calls between desktop computers. "That is a huge opportunity that still has room to grow," he said. "We still all travel a lot for meetings because you can't match the intimate experience of seeing someone in person, even with Skype video calling," he said. "There is a lot more work to do on the core technology to improve quality of video calls." Zennstrom previously sold Skype to online auction house eBay in 2005 for roughly $3 billion. In 2009, he was part of a consortium that bought Skype back from eBay. (Additional reporting by Georgina Prodhan; Editing by David Cowell) Technology Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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