Software giant Microsoft has agreed to acquire internet phone service Skype for $8.5 billion, it has been announced.
In a joint statement, the two companies said the acquisition would increase accessibility of real-time video and voice communications, generate significant new business and revenue opportunities, and further extend Skype’s reach.
The move will also enhance Microsoft’s existing portfolio of real-time communications products and services, which currently include Lync, Outlook, Messenger, Hotmail and Xbox LIVE.
Skype will support Microsoft devices such as Xbox and Windows Phone; and Microsoft will connect Skype users with Lync, Outlook, Xbox Live and other communities, the companies said. Microsoft confirmed it would continue to invest in and support Skype clients on non-Microsoft platforms.
Skype, which had 170 million connected users and over 207 billion minutes of voice and video conversations in 2010, will now become a new business division within Microsoft.
Commenting on the deal, Microsoft CEO Steve Ballmer said: “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.”
Skype CEO Tony Bates added: “Microsoft and Skype share the vision of bringing software innovation and products to our customers. 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.”
Founded in 2003 and based in Luxembourg, Skype was acquired by eBay in September 2005. Founded in 1975, Microsoft is headquartered in Redmond, Washington.
