Microsoft Finalizes Acquisition of Skype for $8.5 Billion

Oct 18, 2011

After months of negotiation, Microsoft acquired for Skype, paying $8.5 billion. Under the terms of the agreement, Skype will become a new business division within Microsoft, and Skype CEO Tony Bates will assume the title of president of that division.

Microsoft plans integrate Skype into its existing devices and systems such as Xbox and Kinect, Xbox Live, the Windows Phone, Lync, and Outlook, while continuing to support and develop Skype clients on non-Microsoft platforms.

Skype has 663 million registered users, 170 million of which are monthly regulars, and 8.8 million are paying customers. Niklas Zennström and Janus Friis founded Skype in 2003. It was acquired by eBay in 2005 and sold to an investment group led by Silver Lake in 2009.