Ina Fried

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Microsoft Closes $8.5 Billion Skype Deal

Microsoft said late on Thursday that it has completed its deal to acquire Internet calling leader Skype for $8.5 billion.

With the closing of the deal, which was announced back in May, Skype will become a new business unit within Microsoft, with Skype CEO Tony Bates becoming the president of the newly created Skype division. Over time, Microsoft said, it will integrate Skype into a variety of its products.

“By bringing together the best of Microsoft and the best of Skype, we are committed to empowering consumers and businesses around the globe to connect in new ways,” Bates said in a statement. “Together, we will be able to accelerate Skype’s goal to reach 1 billion users daily.”

It’s the latest big acquisition for Skype, which was first acquired by eBay for $2.6 billion back in 2005. The online auction company sold off most of the company to private equity owners for $1.9 billion in 2009. Then, in May, Microsoft came along with its bid, nabbing Skype before a planned IPO.

Although the deal has received required regulatory approval in most markets, Microsoft noted that the deal has not yet been approved in certain markets.

“The acquisition remains under review in a few countries, and will be completed in those countries when such reviews are closed,” Microsoft said.

Of course, the big question now is what Microsoft is able to do with its big buy.

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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik