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Microsoft to acquire Skype for $8.5 billion

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By Charles Starrett

Contributing Editor
Published: Tuesday, May 10, 2011
News Categories: Digital Media, Apps + Games

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Microsoft has announced that it has entered into an agreement with Skype Global to acquire VoIP service provider Skype for $8.5 billion in cash. According to the announcement, the agreement has already been approved by the boards of directors of both companies, and “will increase the accessibility of real-time video and voice communications, bringing benefits to both consumers and enterprise users and generating significant new business and revenue opportunities.” With 170 million users, Skype will be integrated into Microsoft devices like Xbox, Windows Phone, and Windows, while Microsoft will in turn connect Skype users with Lync, Outlook, Xbox Live and other communities, and will continue to invest in and support Skype clients on other, non-Microsoft platforms.

“Skype is a phenomenal service that is loved by millions of people around the world,” said Microsoft CEO Steve Ballmer. “Together we will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world.”

“Microsoft and Skype share the vision of bringing software innovation and products to our customers,” said Skype CEO Tony Bates, who will assume the title of president of the Microsoft Skype Division. “Together, we will be able to accelerate Skype’s plans to extend our global community and introduce new ways for everyone to communicate and collaborate.”

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Comments

1

$8.5 billion for a company that doesn’t make any money. That’s a sweet, sweet score for Silver Lake Partners, Andreessen Horowitz, and Joltid. Now, there’s this bridge in Brooklyn I can get Microsoft a great deal on ....

This is up there with the Time-Warner/AOL merger.

I like the bit about how they’re going to integrate Skype into Windows phone. The free thinkers at AT&T and Verizon are going to love that one.

Posted by orgel in Falls Church, VA on May 10, 2011 at 7:11 AM (PDT)

2

I think that Microsoft had enough power to bring up their own real-time communication application.  However, it might be easier for Microsoft to build and market successful in someones footsteps (skype).

Was it a good move?  Well, the answer is 50/50 but Microsoft can build their version of skype and introduce it to existing skype users in form of a update.  I don’t know if that will bring up any percentage of users wanting a windows phone.

What I would like to see in the next iOS update is the ability to call skype or fring users.  either a automated process or a additional number field under the individual contact.

Posted by Dennis on May 10, 2011 at 9:14 AM (PDT)

3

Time to delete my Skype account. The less Microsoft in my life, the better. Can PCs run Facetime?

Posted by Farnsworth on May 10, 2011 at 11:07 AM (PDT)

4

$8.5 billion in cash? Are there even that many bills in circulation?

Posted by mikeman118 on May 11, 2011 at 6:24 PM (PDT)

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