Microsoft buys Skype for $8.5 billion, in support for Xbox Live and Kinect

By on May 11, 2011 in Business, Internet, United States Comments

Microsoft Corporation bought Skype for $8.5 billion and has been already approved by the board of directors of both companies, which will eventually support Microsoft’s devices including Xbox Live and Kinect.

Microsoft CEO Steve Ballmer (L) shakes hands with
Skype CEO Tony Bates during the May 10 press
conference, as Microsoft has agreed to buy Skype

Image Credit: Getty Images

Earlier reports revealed that the Microsoft-Skype business deal is being expected to give Microsoft a brand name in the field of online phone and video conversation.

As formally announced by Microsoft CEO Steve Ballmer in a press conference on Tuesday, May 10, 2011, Microsoft has agreed to buy Skype for $8.5 billion.

“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.” Ballmer was quoted as saying.

Skype is a phenomenal service that is loved by millions of people around the world,” the Microsoft CEO added, noting that he wants to see Skype in all Microsoft products.

Apparently, Mr. Ballmer was referring to Xbox Live, Kinect and Windows Phone among others, which Lync and Outlook users will now enjoy Skype as their voice and video communication.

According to a press release by Microsoft on its official website on the same day, Microsoft purchased Skype in full cash from the group of investors led by Silver Lake.

Microsoft and Skype share the vision of bringing software innovation and products to our customers,” Skype CEO Tony Bates said on the report, which will be president of Microsoft Skype Division, and will report directly to Ballmer.

“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,” Bates added.

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