We are excited about Skype's long-term future with Microsoft, as it is poised to become one of the world's most dynamic and comprehensive communications platforms."įounded in 2003, Skype was acquired by eBay in September 2005, and then acquired by an investment group led by Silver Lake in November 2009. Speaking on behalf of the investor group that sold Skype to Microsoft, Egon Durban, managing director of Silver Lake, said: "We are thrilled with Skype's transformation during the period of our ownership and grateful for the extraordinary commitment of its management team and employees. I'm looking forward to Skype's talented global workforce bringing its insights, ideas and experience to Microsoft," Ballmer said. "Tony Bates has a great track record as a leader and will strengthen the Microsoft management team. "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," Bates said. "Microsoft and Skype share the vision of bringing software innovation and products to our customers," said Tony Bates. Skype will become a new business division within Microsoft, and Skype CEO Tony Bates will assume the title of president of the Microsoft Skype Division, reporting directly to 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." "Skype is a phenomenal service that is loved by millions of people around the world," said Microsoft CEO Steve Ballmer. Microsoft will continue to invest in and support Skype clients on non-Microsoft platforms. Skype will support Microsoft devices like Xbox and Kinect, Windows Phone and a wide array of Windows devices, and Microsoft will connect Skype users with Lync, Outlook, Xbox Live and other communities. Microsoft has a long-standing focus and investment in real-time communications across its various platforms, including Lync (which saw 30 percent revenue growth in Q3), Outlook, Messenger, Hotmail and Xbox LIVE. With 170 million connected users and over 207 billion minutes of voice and video conversations in 2010, Skype has been a pioneer in creating rich, meaningful connections among friends, families and business colleagues globally. The combination will extend Skype's world-class brand and the reach of its networked platform, while enhancing Microsoft's existing portfolio of real-time communications products and services. The acquisition 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. The agreement has been approved by the boards of directors of both Microsoft and Skype. (Nasdaq: "MSFT") and Skype Global S.à r.l today announced that they have entered into a definitive agreement under which Microsoft will acquire Skype, the leading Internet communications company, for $8.5 billion in cash from the investor group led by Silver Lake. REDMOND, Wash., and LUXEMBOURG – – Microsoft Corp. You can follow a live stream of Steve Ballmer and Tony Bates' presentation right here.Ĭombined companies will benefit consumers, businesses and increase market opportunity. It was signed last night, May 9th, though the price was finalized on April 18th. Update: Microsoft has just disclosed a couple more details about the deal. The deal is expected to close by the end of this year and you can read Microskype's full announcement after the break. A new Microsoft Skype Division will now be opened up to accommodate the newcomers, with current Skype CEO Tony Bates becoming president of that operation and reporting directly to Ballmer. Importantly, this purchase shouldn't affect Skypers outside of the Microsoft ecosystem, as Steve Ballmer's team promises to continue "to invest in and support Skype clients on non-Microsoft platforms." Skype was first sold for a relative bargain at $2.5b to eBay in 2005, who in turn sold most of it off to Silver Lake in 2009 at an overall valuation of $2.75b, and now Redmond is concluding proceedings by tripling those earlier prices and offering Skype a permanent home. Xbox and Kinect support are explicitly mentioned in the announcement of this definitive agreement, as is Windows Phone integration - both the gaming and mobile aspects being presumably key incentives for Microsoft to acquire Skype. It was pretty much known about since last night, but Microsoft and Skype have now obliterated any lingering doubt in the matter: the Redmond-based software giant will acquire the internet telephony company for a cool $8.5 billion in cash.
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