MICROSOFT TO ACQUIRE SKYPE
~ Combined Companies
Will Benefit Consumers, Businesses and Increase Market
Opportunity ~
May 2011
(Redmond, WA & Luxembourg,
Tuesday) -- This morning Microsoft and Skype announced
that they have entered into a definitive agreement under
which Microsoft will acquire Skype for $8.5 billion
in cash. The agreement has been approved by the boards
of directors of both Microsoft and Skype. The acquisition
will increase the accessibility of real-time video and
voice communications to consumers and enterprise users.
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. 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.
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 Microsoft CEO
Steve Ballmer.
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.
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. For more information, visit www.microsoft.com/presspass/presskits/corpnews
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