Microsoft to acquire Skype

VARINDIA- INDIA'S FRONTLINE IT MAGAZINE

Microsoft to acquire Skype

Microsoft agreed to buy Skype Technologies, the popular web-calling service, for $8.5 billion and thus expand its Internet presence.

According to a statement released, Microsoft will acquire Skype, with 170 million active users, from an investor group led by Silver Lake. The agreement was approved by the boards of directors of both companies.

The takeover may help Microsoft Chief Executive Officer Steve Ballmer attract web users and narrow Google's lead in Web advertising. Microsoft will connect Skype to its Outlook e-mail, Xbox game console, Windows mobile phones and corporate-phone software. The acquisition is Redmond, Washington-based Microsoft's largest, surpassing the purchase of AQuantive for about $6 billion in 2007.

Skype CEO Tony Bates will be President of the Microsoft Skype Division, reporting to Ballmer.Skype services could be an added selling point for Windows Phone, the mobile operating system Microsoft is promoting as a competitor to Google's Android and Apple's iOS.

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