Microsoft buys Skype for $8.5 billion

So the rumors are true that Microsoft is buying Skype for an allegedly $8.5PHP 499INR 720EUR 8CNY 62 billion big bucks. Microsoft published the official press release a few moments back.

skye eBay bought Skype back in 2005 for around $2.6PHP 153INR 220EUR 2CNY 19 billion. Not having found any good use for it (was supposed to be integrated to the eBay), the auction site was ready to sell it off as early as 2008.

It was then bought in 2009 by an investment group (Silver Lake, eBay International AG, CPP Investment Board, Joltid Limited in partnership with Europlay Capital Advisors; and Andreessen Horowitz.)

The $8.5PHP 499INR 720EUR 8CNY 62 billion agreement (to be paid all in cash) looks to be the biggest purchase Microsoft has ever made.

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 sale agreement is interesting considering that Microsoft also has it’s own VOIP service in the form of Microsoft Live. However, the 170 million strong user-base of Skype could be the biggest attraction to this agreement.

Microsoft will be creating a new business division called the Microsoft Skype Division, which will also be led by the current CEO of Skype.

Abe Olandres

Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and considered by many as the Father of Tech Blogging in the Philippines. He is also a technology consultant, a tech columnist with several national publications, resource speaker and mentor/advisor to several start-up companies.

https://www.yugatech.com

30 Comments

arj says:

14 years ago

another merge again. i hope skype will still offer free calls
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benchmark says:

14 years ago

sabi nga dun sa isang comment regarding buying sun by PLDT, “if you can’t beat them, buy them”.
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kebbot says:

14 years ago

I hope Nokia will have skype video calling soon…
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Fleeb says:

14 years ago

@benchmark: but unlike PLDT and Sun, Microsoft is competing directly with Skype. Google Voice perhaps?
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adam says:

14 years ago

^^^ Nice Idea if ganun ang mangyari.
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poche says:

14 years ago

same as sa digitel yun ceo din ng skype ang uupo as head ng division na yun kaya wala problema mas gaganda pa nga infrastructure ng skype nian at mas dadami users since iintegrate sa ibat ibang ms products.

by the way ang tinalo ng microsoft sa skype bidding e facebook at google.
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Name: says:

14 years ago

8.5 billion…not a bad sum for the creators of skype, wow. I like that it will soon be integrated with xbox live and kinect, that’d be nice. I wonder though, any indication that the monthly price of skype may go up at all?
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Roofer says:

14 years ago

I love Skype. Hopefully MS will make it even better.
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Zone Android says:

14 years ago

8.5 billion – a big number. Will Skype accept or they will like Yahoo ?
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iphonedevpinoy says:

14 years ago

MS will launch this as Microsoft Skype Network or Microsoft SkyNet :D
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sylv3rblade says:

14 years ago

This probably spells death for Skype on the PSP.

Also, it makes sense to buy out skype considering they’re offering a similar service for their enterprise customers (with more Office integration).
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florencia says:

14 years ago

wow. ibang klase talaga Microsoft.
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d says:

14 years ago

so microsoft lacks the faith for their own chat/online services like windows live and msn? their messenger basically offers the same features like skype. save for the landline and mobile calls features maybe.
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nameless says:

14 years ago

Currently im using SKYPE for LINUX. what about now?
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bus ads manila says:

14 years ago

i think this is a good move from them, imagine you have 170 million user base :). Talk about upsells and rebills. Besides more businesses are moving to a more cheaper telecom services. Video conferencing should be a standard on all pc’s in the future too :)
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bennix says:

14 years ago

Wow!a good move for Microsoft, hope Nokia will be supported by Skype din so there’s would significant improvements.

Guy,s I just know Windows 8 screenshots is one of the hottest rumor this month….
http://www.bennixville.com/2011/05/windows-8-leaked-screenshots-specs-and.html

Thanks Yuga.What if Microsoft will buy Yugatech?
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Ry says:

14 years ago

Aww, I hope that Skype will still continue to develop Skype for Android Honeycomb…
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eagle says:

14 years ago

I hope Skype’s quality doesn’t drop with Microsoft in it and only becomes more effective. Systems like skype are quite sensitive. Skype really deserves something because it makes the communication so easier. There is no match for skype at the moment in the electronic communications industry.

The price is low though I think. As compared to facebook which they price at $25 Billions, skype has more utility but it’s price is low!

Eagle
http://eseaf.com
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me says:

14 years ago

It is a copy-cat move to Apple’s Facetime.
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