Skype Now Officially a Division of Microsoft, $8.5B Cash Deal Closes
October 15, 2011 7:09 AM
comment(s) - last by
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".
This article is over a month old, voting and posting comments is disabled
RE: Is your friend your competitor and your competitor your friend?
10/17/2011 9:36:44 AM
Not to mention the market share is miniscule compared to Windows. They have to do all that extra work for such a tiny percentage of people.
"This is about the Internet. Everything on the Internet is encrypted. This is not a BlackBerry-only issue. If they can't deal with the Internet, they should shut it off." -- RIM co-CEO Michael Lazaridis
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
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
Mozilla and Facebook to Adobe: It's Time to Kill Flash
July 20, 2015, 6:30 PM
Instagram Bans "Curvy" From Hashtag Searches, Provokes "Plus Sized" Outrage
July 16, 2015, 1:20 PM
Mozilla Promise Punctual Windows 10 Firefox Release, Teases at iOS Arrival
July 7, 2015, 3:08 PM
Most Popular Articles
Microsoft Band 2 Stays Focused on Fitness, Debuts Oct. 30, Priced at $249
October 6, 2015, 9:16 PM
Microsoft's HD-500 ("Display Dock"), the Magic Sauce Behind Continuum
October 6, 2015, 5:30 PM
Microsoft Lumia 950 and 950 XL Finally Launch, w/ Windows 10, Liquid Cooling
October 6, 2015, 3:35 PM
Legere Blasts Microsoft for "Bull***t" Snub of T-Mobile and Verizon
October 9, 2015, 3:02 PM
Apple's First Fixes to iOS 9 Land w/ iOS 9.0.1 Release
September 23, 2015, 6:11 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information