Microsoft to buy Skype for $8.5 billion

Microsoft has agreed to buy Internet phone service provider Skype for $8.5 billion in cash, the companies announced Tuesday.
Skype -- currently owned by a group led by private equity firm Silver Lake -- will become a new business unit within Microsoft, which will be run by Tony Bates, the company's current chief executiv

Microsoft said it plans to incorporate Skype's real-time video and voice communications into its existing product lines, including Office, Windows Phone and the Xbox gaming system.
As the largest acquisition in its history, the deal marks a significant change in strategy for Microsoft, which has not bought another company since 2006.
"Today is a big day for Microsoft and Skype, as well as businesses and consumers around the world," said Microsoft chief executive Steve Ballmer. The goal, he said, is to "empower people around the world with technology that will bring them together."
Skype has become one of the most recognizable brands in the Internet communication business. It draws 600,000 new registrations every day, and has had annual revenue growth of 40%, according to Microsoft.
The company, based in Luxembourg, filed for a $100 million IPO last year. But the actual offering was delayed, and rumors surfaced last week that the company was in talks with Microsoft and Facebook.
"We're in a very special place in the industry," said Bates, adding that Skype has 100 million users that log 100 minutes each month.

story source;http://money.cnn.com/2011/05/10/technology/microsoft_skype/index.htm?iid=HP_LN

Posted in: Microsoft has agreed to buy Internet phone service provider Skype,Microsoft to buy Skype for $8.5 billion