Formerly codenamed "Longhorn" in the early development stages, Windows Vista was released to consumers on January 30, 2007. Microsoft also released a new version of its Office suite, called Microsoft Office 2007, alongside Windows Vista. Windows Server 2008 and Visual Studio 2008, the next versions of the company's server operating system and development suite, respectively, were released on February 27, 2008. Windows Vista was criticized for being heavy and needing large amounts of power to run the desktop widgets and the Aero theme. Many people continued to use Windows XP for many years after, due to its stability and low processing needs.
On December 19, 2007, Microsoft signed a five-year, $500 million contract with Viacom that included content sharing and advertisements. The deal allowed Microsoft to license many shows from Viacom owned cable television and film studios for use on Xbox Live and MSN. The deal also made Viacom a preferred publisher partner for casual game development and distribution through MSN and Windows. On the advertisement side of the deal, Microsoft's Atlas ad-serving division became the exclusive provider of previously unsold advertising inventory on Viacom owned web sites. Microsoft also purchased a large amount of advertising on Viacom owned broadcasts and online networks, and collaborated on promotions and sponsorships for MTV and BET award shows, two Viacom owned cable networks.
In 2008, Microsoft wanted to purchase Yahoo (first completely, later partially) in order to strengthen its position on the search engine market vis-à-vis Google. The company rejected the offer, saying that it undervalued the company. In response, Microsoft withdrew its offer.
In 2009, the opening show of the Consumer Electronics Show (CES) was hosted by Steve Ballmer for the first time. In past years, it has been hosted by Bill Gates. During the show, Ballmer announced the first public Beta Test of Windows 7 for partners and developers on January 8, but also for the general public two days later. On June 26, 2009, Microsoft started taking pre-orders at a discounted price for Windows 7 which was launched on October 22, 2009. Windows 7 has several editions, which acknowledge the rise of netbook computers with reduced processing power.
On April 12, 2010, Microsoft launched their Kin phone line, a result of their acquisition of Danger Incorporated in 2008. The phones became available May 14, 2010, but were discontinued within two months because of poor sales.
On May 10, 2011, the company acquired Skype Technologies for US$8.5 billion.
