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Microsoft to Acquire Skype 2011.05.10

Redmond, Wash., USA and Luxembourg - May 10, 2011 - Microsoft Corp. (Nasdaq: MSFT) and Skype Global S.a.r.l today announced that they have entered into a definitive agreement under which Microsoft will acquire Skype, the leading Internet communications company, for $8.5 billion in cash from the investor group led by Silver Lake. Combined companies will benefit consumers, businesses and increase market opportunity.

At home. Experience the magic of having your loved ones together for regular family catch ups. Ideal if you work from home, too. Simply add two or more people to a video call to get together face-to-face.
Courtesy of Skype
 

Redmond, Wash., USA and Luxembourg – May 10, 2011

Microsoft Corp. (Nasdaq: “MSFT”) and Skype Global S.à.r.l today announced that they have entered into a definitive agreement under which Microsoft will acquire Skype, the leading Internet communications company, for $8.5 billion in cash from the investor group led by Silver Lake.

At work. Group video calling can help you to build relationships and work effectively with colleagues, customers and clients from all over the world. Plus cutting down on travel means more time with loved ones at home.
Courtesy of Skype
 
The agreement has been approved by the boards of directors of both Microsoft and Skype
.

Quickly and easily set up Skype business accounts for your colleagues, keep track of what theyʼre spending, allocate features and monitor usage in real time, all from one central point.
Courtesy of Skype
 
The acquisition will increase the accessibility of real-time video and voice communications, bringing benefits to both consumers and enterprise users and generating significant new business and revenue opportunities.

Employees no longer need to worry about buying credit or features themselves - they are allocated centrally from Skype Manager. And with auto-recharge set up they'll always have credit available to make that important business call.
Courtesy of Skype
 
The combination will extend Skype’s world-class brand and the reach of its networked platform, while enhancing Microsoft’s existing portfolio of real-time communications products and services
.

With 170 million connected users and over 207 billion minutes of voice and video conversations in 2010, Skype has been a pioneer in creating rich, meaningful connections among friends, families and business colleagues globally.

One tool to manage Skype across your entire business. Skype Manager is a web-based management tool that lets you centrally manage Skype for businesses of any size.
Courtesy of Skype
 
Microsoft
has a long-standing focus and investment in real-time communications across its various platforms, including Lync (which saw 30 percent revenue growth in Q3), Outlook, Messenger, Hotmail and Xbox LIVE.

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.

Group video calling. Share, celebrate and collaborate from anywhere in the world. There's so much you can do together over group video.
Courtesy of Skype
 
“Skype is a phenomenal service that is loved by millions of people around the world,” said Microsoft CEO Steve Ballmer.
“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.”

Group video calling. Share, celebrate and collaborate from anywhere in the world. There's so much you can do together over group video.
Courtesy of Skype
 
Skype will become a new business division within Microsoft
, and Skype CEO Tony Bates will assume the title of president of the Microsoft Skype Division, reporting directly to Ballmer.

Group video calling. Share, celebrate and collaborate from anywhere in the world. There's so much you can do together over group video.
Courtesy of Skype
 
“Microsoft and Skype share the vision of bringing software innovation and products to our customers,” said Tony Bates.
“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 said.

Download Skype to your mobile phone. Use Skype on your Verizon Wireless phone, iPhone and more.
Courtesy of Skype
 
“Tony Bates has a great track record as a leader and will strengthen the Microsoft management team. I’m looking forward to Skype’s talented global workforce bringing its insights, ideas and experience to Microsoft,” Ballmer said.

Courtesy of Microsoft
 
Speaking on behalf of the investor group that sold Skype to Microsoft, Egon Durban, managing director of Silver Lake, said:
“We are thrilled with Skype’s transformation during the period of our ownership and grateful for the extraordinary commitment of its management team and employees. We are excited about Skype’s long-term future with Microsoft, as it is poised to become one of the world’s most dynamic and comprehensive communications platforms.”

Founded in 2003, Skype was acquired by eBay in September 2005, and then acquired by an investment group led by Silver Lake in November 2009.

Skype has made impressive progress over the past 18 months under Silver Lake’s leadership, increasing monthly calling minutes by 150 percent, developing new revenue streams and strategic partnerships, acquiring the intellectual property powering its peer-to-peer network, and recruiting an outstanding senior management team.

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

The acquisition is subject to regulatory approvals and other customary closing conditions.

The parties hope to obtain all required regulatory clearances during the course of this calendar year.


About Skype


Skype is communications software whose purpose is to break down barriers to communication.

 
 
With an Internet-connected device, families, friends and colleagues can get together for free with messaging, voice and video.

At low cost, they can also call landlines or mobiles virtually anywhere in the world.

Skype has recently introduced group video, allowing groups of more than two people to do things together whenever they're apart.

Founded in 2003 and based in Luxembourg.

Skype can be downloaded onto computers, mobile phones and other connected devices for free.


About Microsoft


Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.


Source: Microsoft

http://www.microsoft.com/presspass/press/2011/may11/05-10corpnewspr.mspx  



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