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Microsoft Pays $8.5 Billion For Skype
Microsoft and Skype Global have announced that the two companies have agreed to a deal that would have Microsoft acquire the Internet communications company for $8.5 billion. With the deal in place, real-time video and voice calling will be supported by the Xbox 360, including the Kinect peripheral.
The deal seems somewhat puzzling until you consider the fact that Microsoft has sold more than 10 million Kinect units, essentially providing an inroad to living rooms across the world. Until now, Skype has largely been used through PCs, mobile phones, and a handful of televisions with built-in support. On the gaming front, Sony's PSP has supported Skype for a few years now, but those PS3 owners who have been hoping the feature would jump over to their system are now likely to be disappointed.
“Skype is a phenomenal service that is loved by millions of people around the world,” says 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 Skype CEO 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." Microsoft says that Bates will become president of the Microsoft Skype Division, reporting to Ballmer.
Skype was founded in 2003, and was acquired by eBay in 2005. An investment group led by Silver Lake purchased the company in November 2009.
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