May 10, 2011

Microsoft acquires Skype for $ 8.5 Billion

Microsoft announced a definitive agreement to buy Skype for $8.5 billion. The deal, announced today, would be a shot in the arm for cash-rich Microsoft in competing with strong rivals such as Google and Apple apart from strengthening its footprint in the consumer markets.

"The companies have entered into a definitive agreement under which Microsoft will acquire Skype, the leading Internet communications company, for USD 8.5 billion in cash from the investor group led by Silver Lake," the two firms said in a joint statement.

"Skype is a phenomenal service that is loved by millions of people around the world. 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 CEO Steve Ballmer said.

Skype would become a new business division within Microsoft, and Skype CEO Tony Bates would become President of Microsoft Skype Division , reporting directly to Ballmer.

"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," Skype CEO Tony Bates said.

Skype was founded in 2003 and acquired by online auction giant eBay in September 2005. It was sold to the investment group led by Silver Lake in November 2009 in a deal that valued the company at $US2.75 billion ($2.54b). Skype has 170 million users and logged more than 207 billion minutes of voice and video conversations in 2010.

"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," Silver Lake MD Egon Durban said while speaking on behalf of the investor group that sold Skype to Microsoft.

Bookmark and Share

No comments:

Post a Comment

Thank you for visiting my Blog. I appreciate the time you have spared for it.

Related Posts Plugin for WordPress, Blogger...