Microsoft finalizes acquisition of Skype, Tony Bates shares his thoughts (video)

Microsoft and Skype will empower people and businesses to glue in new ways.

REDMOND, Wash., and LUXEMBOURG – Oct. 13, 2011 – Microsoft Corp. (Nasdaq “MSFT”) has closed its acquisition of Skype Global S.à r.l. Negotiations of the definitive agreement under which Microsoft would acquire Skype, a web communications company, for $8.5 billion were led by investor group Silver Lake and the transaction was originally announced on May 10, 2011. Boards of directors of both Microsoft and Skype previously approved the purchase.

Microsoft and Skype will remain excited by their shared goal of connecting every body across all devices and accelerating both companies’ efforts to rework real-time communications for consumers and enterprise customers. The completion of the purchase also marks the official introduction of Skype as a brand new business division within Microsoft.

“Skype is an outstanding product and brand it is loved by hundreds of millions of individuals everywhere,” said Microsoft CEO Steve Ballmer. “We glance forward to working with the Skype team to create new ways for folk to remain connected to family, friends, clients and co-workers – anytime, anywhere.”

Skype CEO Tony Bates will assume the title of president of the Skype Division of Microsoft immediately, reporting on to Ballmer. The Skype division will continue to give its current products to millions of users globally. Long run, Skype may also be integrated across an array of Microsoft products to broaden Skype’s reach and accelerate its growth as a fundamental way people communicate online. Skype employees will stay located around the globe in offices including Estonia, the Czech Republic, Russia, Sweden, the uk, Luxembourg, Japan, Singapore, Hong Kong, and the usa.

“By bringing together the most efficient of Microsoft and the right of Skype, we’re committed to empowering consumers and businesses around the world to glue in new ways,” Bates said. “Together, we will accelerate Skype’s goal to succeed in 1 billion users daily,” Bates said.

Founded in 2003, Skype was acquired by eBay in September 2005, after which acquired by an investment group led by Silver Lake in November 2009. Skype has made impressive progress, developing new products and revenue streams, strategic acquisitions, acquiring the intellectual property powering its peer-to-peer network, and recruiting a great senior management team.

Other members of the marketing investor group led by Silver Lake include eBay International AG, CPP Investment Board, Joltid Ltd. in partnership with Europlay Capital Advisors; and Andreessen Horowitz.

The purchase remains under review in a couple of countries, and should be completed in those countries when such reviews are closed.