Microsoft to acquire Skype for USD 8.5 bn

In one of its biggest buyouts in over three decades, Microsoft will snap up Skype for USD 8.5 billion in cash, a move that would bolster the software major's presence in the highly competitive Internet market.

PTI | May 11, 2011



In one of its biggest buyouts in over three decades, Microsoft will snap up Skype for USD 8.5 billion in cash, a move that would bolster the software major's presence in the highly competitive Internet market.

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.

The transaction has been approved by the boards of directors of the two companies.

Skype, a popular communications software, uses of voice over Internet protocol technology that makes international voice and video calls cheaper.

Microsoft is estimated to have cash worth USD 48 billion and the Skype deal would become its largest acquisition in around 36 years. The software major's last big-ticket deal was the USD 6 billion purchase of advertising firm aQuantive in 2007.

"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.

Post acquisition, 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.

Skype would support Microsoft devices such as gaming console Xbox, Kinect as well as a wide array of Windows applications. Microsoft will connect Skype users with Lync, Outlook, Xbox Live and other communities.

Microsoft will continue to invest in and support Skype clients on non-Microsoft platforms, the release added.

"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.

Founded in 2003, Skype was acquired by eBay in September 2005, and then acquired by an investment group led by Silver Lake in November 2009. .
 

Comments

 

Other News

How the mind can help the body heal itself

Why do some people recover from illness against all odds? Can our beliefs, emotions and consciousness influence the body’s ability to heal? Drawing on over three decades of experience in medicine, research and medical innovation, internationally trained ophthalmologist and author Dr Dinesh Verma ex

1,364 anti-cancer formulations to cost less from today

The National Pharmaceutical Pricing Authority (NPPA), under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, has capped trade margins on the Maximum Retail Price (MRP) of 137 anti-cancer drugs. This was based on the recommendations of an Expert Committee constitute

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.  

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter