Microsoft paid double - for Internet telephone company Skype for $8.5 billion in cash from an investor group led by Silver Lake private investment fund, its biggest deal ever, Microsoft said in a statement on Tuesday.
The deal is aimed at improving Microsoft's existing portfolio of real-time communications products and services, the company said.
Skype will support Microsoft's devices like Xbox and Kinect, Windows Phone and a wide array of Windows devices, while Microsoft will connect Skype users with Lync, Outlook, Xbox Live and other communities.
Microsoft also said it would continue to invest in and support Skype clients on non-Microsoft platforms. Skype also provides services for applications for the iPhone and iPad, Motion's BlackBerry and Android phones.
Microsoft will create a new business division for Skype and appoint Skype CEO Tony Bates as president of Microsoft Skype Division.
The companies hope to obtain all required regulatory approvals by the end of the year.
Founded in 2003, Skype was acquired by eBay in 2005, and in 2009 purchased by a group of investors led by Silver Lake. Other members of the selling group are eBay International AG, CPP Investment Board, Joltid Limited in partnership with Europlay Capital Advisors.
Media reports say that Facebook and Google also showed interest in Skype, which made a $7 million net loss in 2010, but their offers were only around half what Microsoft offered.
The deal is aimed at improving Microsoft's existing portfolio of real-time communications products and services, the company said.
Skype will support Microsoft's devices like Xbox and Kinect, Windows Phone and a wide array of Windows devices, while Microsoft will connect Skype users with Lync, Outlook, Xbox Live and other communities.
Microsoft also said it would continue to invest in and support Skype clients on non-Microsoft platforms. Skype also provides services for applications for the iPhone and iPad, Motion's BlackBerry and Android phones.
Microsoft will create a new business division for Skype and appoint Skype CEO Tony Bates as president of Microsoft Skype Division.
The companies hope to obtain all required regulatory approvals by the end of the year.
Founded in 2003, Skype was acquired by eBay in 2005, and in 2009 purchased by a group of investors led by Silver Lake. Other members of the selling group are eBay International AG, CPP Investment Board, Joltid Limited in partnership with Europlay Capital Advisors.
Media reports say that Facebook and Google also showed interest in Skype, which made a $7 million net loss in 2010, but their offers were only around half what Microsoft offered.
