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 Microsoft buys Skype for $8.5 billion

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PostSubject: Microsoft buys Skype for $8.5 billion   Wed May 11, 2011 11:02 pm

So the rumors are true that Microsoft is buying Skype for an allegedly $8.5 billion big bucks. Microsoft published the official press release a few moments back.

eBay bought Skype back in 2005 for around $2.6 billion.
Not having found any good use for it (was supposed to be integrated to
the eBay), the auction site was ready to sell it off as early as 2008.

It was then bought in 2009 by an investment group (Silver Lake, eBay
International AG, CPP Investment Board, Joltid Limited in partnership
with Europlay Capital Advisors; and Andreessen Horowitz.)

The $8.5 billion agreement (to be paid all in cash) looks to be the biggest purchase Microsoft has ever made.

<blockquote>Skype will support Microsoft devices like Xbox and
Kinect, Windows Phone and a wide array of Windows devices, and 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.</blockquote>

The sale agreement is interesting considering that Microsoft also has
itís own VOIP service in the form of Microsoft Live. However, the 170
million strong user-base of Skype could be the biggest attraction to
this agreement.

Microsoft will be creating a new business division called the
Microsoft Skype Division, which will also be led by the current CEO of
Skype.
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