Skype Now Officially a Division of Microsoft, $8.5B Cash Deal Closes
October 15, 2011 7:09 AM
Microsoft sees opportunities for integration
Skype is now officially a division of Microsoft, after the two firms closed an $8.5B cash deal yesterday. The Internet communications firm is known for its software applications that allow users to make voice and video calls over the Internet for free.
The acquisition was
on May 10, but faced regulatory hurdles from the United States and the European Union. The European Commission’s decision to approve Microsoft’s acquisition of Skype last week was the final obstacle.
“Skype is a phenomenal product and brand that is loved by hundreds of millions of people around the world,” said Microsoft CEO Steve Ballmer. “We look forward to working with the Skype team to create new ways for people to stay connected to family, friends, clients and colleagues — anytime, anywhere.”
There were 663 million registered Skype users as of September 2011, with as many as 30 million users online at once.
Skype was founded in 2003 by Niklas Zennström of Sweden and Janus Friis of Denmark. Its growth was fuelled by the lure of unlimited free international calling, which was the traditional purview of phone companies.
The company soon grew to become the world's largest
international voice carrier
, offering calls to landlines and mobile phones for pennies per minute. The promise of profits was so great that
eBay bought Skype
in 2005 for $2.6 billion.
evolved with technology
, adding free videotelephony as bandwidth got cheaper. As webcams improved, Skype added support for HD video. The software was developed for smartphones, TVs, and other consumer electronics such as the iPad.
70% of Skype to a consortium
for $1.9 billion in cash and a note for $125 million in November 2009, placing its valuation at $2.75 billion. Today's sale means that eBay has more than doubled its original investment.
Microsoft sees the Skype acquisition as being key to its future growth. Skype CEO Tony Bates will assume the title of President of the Skype Division of Microsoft immediately, reporting directly to Ballmer.
Skype software will be integrated into Microsoft's Xbox 360 video game console, Windows 7 phones, and the upcoming Microsoft Office 2012. It may also be offered as part of the Windows 8 operating system, set for release late next year.
Technology from Microsoft's Lync (formerly Office Communicator) may make its way into corporate versions of Skype. Google has begun offering Google Voice as a part of Gmail, and Microsoft could counter that threat by integrative Skype into Hotmail.
“By bringing together the best of Microsoft and the best of Skype, we are committed to empowering consumers and businesses around the globe to connect in new ways,” Bates said. “Together, we will be able to accelerate Skype’s goal to reach 1 billion users daily".
"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton
UPDATED: Microsoft Buys Skype for $8.5B in Cash
May 10, 2011, 8:34 AM
EBay Selling Skype For $1.9 Billion
September 2, 2009, 6:45 AM
China "Spying" on Skype, Researchers Reveal Database
October 6, 2008, 6:27 PM
Skype Turns Attention to TV Market
December 18, 2006, 11:31 PM
Skype to be Integrated with eBay
June 14, 2006, 12:37 PM
Google plans ultra-fast wireless Internet for Research Triangle Park, N.C.
August 12, 2016, 6:30 AM
Twitter Senior VP: "Diversity is Important, But We Can’t Lower the Bar"
November 9, 2015, 9:59 AM
CNN Resorts to Internet Censorship to Promote Clinton Over Senator Sanders
October 15, 2015, 2:47 PM
Breaking Bad: How to Crash Google's Chrome Browser With Just 8 Characters
September 23, 2015, 11:08 AM
Quick Note: Amazon UK Offers £10 Back on Any Order £50 or Over
August 3, 2015, 12:05 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Most Popular Articles
Car Insurance - The Hidden Discriminatory Practise
October 18, 2016, 5:00 AM
Is Razer Blade Stealth Laptop For You?
October 16, 2016, 5:00 AM
Cyber Hackers Threaten Security of Lifesaving Medical Devices
October 19, 2016, 8:09 AM
Excellent Wi-Fi Camera - Panasonic Lumix DMC-FZ300K
October 18, 2016, 5:00 AM
Problems with Windows 10 – Update Now
October 15, 2016, 7:30 AM
Latest Blog Posts
MacBoo Pro 2016: Release date Oct. 27
Oct 24, 2016, 7:16 AM
Mac Users, Try this if Your Mac is Infected?
Oct 23, 2016, 7:00 AM
Tips to Prevent Smartphones From Overheating:
Oct 22, 2016, 5:00 AM
Nasa Flies Drones at Nevada Airport
Oct 21, 2016, 8:21 AM
T-Mobile Data Problems
Oct 20, 2016, 10:17 AM
Annoying Apple Watch Problems and How to Fix Them
Oct 20, 2016, 5:00 AM
Your Mail May Soon Be Delivered By Robot
Oct 19, 2016, 9:34 AM
2018 Jeep Wrangler Prototype Sells At Junkyard
Oct 18, 2016, 5:00 AM
Samsung Shines with Gold Edition Tablet
Oct 17, 2016, 9:24 AM
Tesla Hints Mysterious Product Debut for October 17th
Oct 16, 2016, 10:14 AM
Samsung Galaxy Note 7 Phones on US flights
Oct 15, 2016, 5:00 AM
Comcast Fined $2.3 Million For Unconfirmed Services Charged To Customers
Oct 14, 2016, 5:00 AM
“American singer / songwriter “Bob Dylan is awarded 2016 Nobel Prize in Literature.
Oct 13, 2016, 10:33 AM
Battery Defect in Medical Device
Oct 12, 2016, 5:00 AM
IBM Bolsters Social Services Sector With Technology Grants
Oct 11, 2016, 5:00 AM
Scientists Sound Alarm on Climate but US Still Toys With Skepticism
Oct 10, 2016, 5:00 AM
IMEX America Trade Show
Oct 9, 2016, 10:00 AM
Phone Wars – Google VS Samsung Free Gifts on Purchase
Oct 6, 2016, 5:00 AM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information