Microsoft buys Skype for $8.5 billion

By Bizclik Editor

 

It was announced this morning that the largest acquisition ever made as Microsoft buys Skype Global for $8.5 billion, making for the biggest deal in recent years. Microsoft Corp. will buy the company in cash from the investor group led by Silver Lake.

According to a statement released by Microsoft:

“The acquisition will increase the accessibility of real-time video and voice communications, bringing benefits to both consumers and enterprise users and generating significant new business and revenue opportunities. The combination will extend Skype’s world-class brand and the reach of its networked platform, while enhancing Microsoft’s existing portfolio of real-time communications products and services.”

Microsoft’s last biggest purchase was back in 2007 when it bought online advertising firm aQuantive for $6 billion. After today’s purchase, Skype users will now be able to connect Microsoft programs, such as Outlook and even Xbox Live, and Skype will have the capabilities to support Microsoft devices like the Kinect.

See top stories in the WDM Content Network:

Today’s purchase makes for the second time Skype was bought out by another party. Investment group Silver Lake bought Skype from its previous owner eBay in 2009 for more than $2 billion. Skype will now become a new division of Microsoft and will be led by chief executive, Tony Bates.

“Skype is a phenomenal service that is loved by millions of people around the world,” said Microsoft CEO Steve Ballmer. “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 and Skype share the vision of bringing software innovation and products to our customers,” said Tony Bates. “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,” Bates said.

About 170 million users chat using Skype and clocked in 207 billion minutes last year. The board members of both companies have approved the deal and the acquisition should be finalized this year.

Share

Featured Articles

Possibilities endless as generative AI takes centre stage

Generative AI is already playing a pivotal role in the way companies are run; the only question is how quickly it can be integrated into everyday tasks

Why companies should be preparing for scope 3 reporting

With a decision looming on the SEC’s proposed changes to climate-related disclosures, leaders should be examining supplier sustainability credentials

People over profit is steering business in a new direction

An unsettling few years has resulted in more and more companies hiring Chief People Officers to implement a culture that prioritises employee wellbeing

Databricks: The phenomenal rise of a data and AI heavyweight

Technology & AI

Business Chief expands portfolio with new look and coverage

Leadership & Strategy

Google at 25: The remarkable rise of a technology colossus

Technology & AI