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Confirming rumors that started hitting the Internet last Sunday,
Microsoft has now officially announced its plans to acquire Skype, the
Internet phone software company. This morning's press release announced
that the price that Microsoft is paying for Skype will indeed be $8.5
billion in cash, as previously revealed on Monday night by the
AllThingsDigital web site. According to the press release, this
major move by Microsoft "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 deal will also "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."
The deal is still subject to government regulatory approvals but
Microsoft hopes to close the deal sometime in 2011. Microsoft
plans to use Skype, which has 170 million registered users, for many of
its products, saying in its press release, "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." The
deal will turn Skype into its own division inside of Microsoft. Skype's
current CEO Skype Tony Bates will be the president of the new Microsoft
Skype Division and will report directly to Microsoft CEO Steve Ballmer.
Ballmer is quoted in the press release as saying, ""Tony Bates has a
great track record as a leader and will strengthen the Microsoft
management team. I’m looking forward to Skype’s talented global
workforce bringing its insights, ideas and experience to Microsoft."