As expected, the European Commission approved Microsoft’s $8.5 billion acquisition of Skype late last week.

Next, the deal for the popular Internet communications company — which had previously been cleared by U.S. regulators — is likely to officially close later this week (paperwork!), said several sources close to the situation.

Now, of course, comes the hard part — which is whether Microsoft can successfully integrate the more nimble Skype into the belly of the software beast and allow it to thrive.

Some key questions:

How smoothly can Microsoft integrate Skype into its existing products, such as its unified communications platform, Outlook mail and Hotmail, Office, Messenger and Xbox Live? And, perhaps most of all, Windows Phone devices?

That said, will Skype also get to do what it needs for its own success beyond Microsoft? That includes working with mobile rivals Apple and Google, who now dominate the smartphone market, as well as many others. It has already managed to buy GroupMe group messaging start-up for $85 million, just months after its own acquisition in May.

And can the division — which will be led by Tony Bates, Skype’s CEO and now a Microsoft president — operate successfully located mostly away from the power center of Redmond, Wash.? Skype has a substantial office in Silicon Valley, as well as key engineering units in Estonia and Stockholm.

In that vein, will Microsoft be able to hold on to new talent like Bates and Skype’s geek squad, all of whom have substantial choices elsewhere? Like a lot of large tech companies, Microsoft is not known for being able to hold on to those who come in from the outside, in large part due to its insular culture of longtime execs.

In other words, how big a welcome will Microsoft’s other powerful presidents — such as Windows division head Steven Sinofsky — give Bates and company?

Is it possible to run an iPad app on a Windows computer, or to run the iPad operating system?

A:

No. Apps for the iPad and iPhone are specifically designed for Apple’s mobile operating system, called iOS, and that operating system is built to run only on Apple’s mobile devices. There are some apps called “Web apps,” which are really websites that behave like applications. For instance, Amazon just released a Web version of its Kindle e-reader app called the Kindle Cloud Reader. These are the exception to the rule: They do work on iPads and Windows PCs. But they aren’t, strictly speaking, iPad apps.

Q:

I am thinking of getting an original iPad (Apple reconditioned) instead of the iPad 2. It would save me about $170 and appears to have about all the same features including full warranty except the camera, which I have on my newer iPod. Any reason I shouldn’t do this?

A:

No, not if you don’t need the cameras and trust Apple’s refurbishing service (I have no reason to distrust it, just have no experience with it). The original iPad runs the same software and apps and has most of the same capabilities. However, it is thicker and heavier than the current model, and while I always found it speedy, it isn’t as fast as the newer one.

Q:

Is there a link you can provide for a free download of Microsoft Word? I didn’t get it on my Windows 7 PC.

A:

Microsoft Word, and the Office suite of which it is a part, aren’t available as free downloads, as far as I know. But you can download a free 60-day trial. If you want a free office suite, you might try Open Office.

Email mossberg@wsj.com.

On Sunday, I motored up to Petaluma to be on This Week in Tech, or TWiT, at its new offices. Hosted by Leo Laporte, it’s a roundtable on the news of the week in the digital sector.

The other panelists included GigaOm’s Om Malik, CNET’s Rafe Needleman and Revision3′s Patrick Norton, talking about everything from the 30th anniversary of the IBM PC to electronic tattoos to the patent issues foiling Google (who knew?) to delicious cupcakes not eaten by Om.

Enjoy:

Can you help my light-sensitive eyes with e-reader advice? I thought Kindle sounded right for me, but I heard there might be an upgrade in the near future. True? Will it be an improvement I should wait for?

A:

Though Amazon hasn’t made a formal announcement, I expect there will be new e-readers from that company in the coming months. I don’t have details, so I can’t say if any new models will be worth the wait. But it’s probable that Amazon will continue to improve on its line of gray-scale, E Ink readers while possibly adding a full-color tablet. If glare is a problem for you, I’d plan on going with an E Ink model, such as the current Kindle or the latest Nook from Barnes & Noble. Full-color tablets like the iPad tend to suffer from glare, especially in direct sunlight.

Q:

I have a child who would like to go to college to become an engineer. Most engineers I know use a PC. I would like to buy my son a Mac for college, but I don’t want to get him something he can’t use.

A:

I know engineers who use Macs and others who use Windows PCs. However, my advice is to get your son whatever type of computer the college engineering department where he winds up suggests would be best. Your near-term goal isn’t to validate either your choice, or that of the engineers you or I know. It’s to get him the tool that is expected or preferred by the people who will be training him. If you want to buy him the computer before you know which school he’ll be attending, you may have to gamble, or research what likely colleges prefer.

Q:

I just started using OneNote on my Windows Notebook and love it. I am thinking of moving to a MacBook Air or Samsung Series 9. Both machines offer the balance of light weight and good performance I’m looking for. I was leaning toward the MacBook Air, until I learned that Office for the Mac does not include OneNote. I’ve read mixed reviews from MacBook Air users who run Windows and the Windows Office Suite. Do you have any experience in this area?

A:

I occasionally run Windows 7 and the Windows version of Microsoft Office on a MacBook Air and find it works just fine. However, I haven’t used OneNote in that scenario, so I can’t say if it works as smoothly as the rest of Office. The Air is a terrific computer, but, as I have said for years, if you are heavily reliant on Windows software, it’s best to buy a Windows PC—in your case, the Samsung—even though Macs can run Windows.

Email Walt at mossberg@wsj.com.

Microsoft had a solid fourth quarter, which is why the conference call with Wall Street analysts should be relatively short and sweet.

Or sweet, at least.

Microsoft reported beat expectations on profits that rose 30 percent, as well as on revenue. Of particular note were its Office, Entertainment and Devices and Servers and Tools units. Even the revenue at its perpetually money-sucking Online Services division was up 17 percent.

(You can see Microsoft’s charts and other data here, if you really want more.)

Here’s a liveblog of the call:

2:31 pm PT: Well, Microsoft investor relations dude-in-chief Bill Koefoed sounds unusually jaunty in his greeting.

And why not? The results are good for Microsoft, even a little giddy, with a lot of impressive numbers and solid launches of several products, from Xbox Kinect to Office 365 to Bing, the very pricey but pretty search service.

Next up is CFO Peter Klein, who also sounds like this particular call is a relief.

He talks about the results a bit, most of which are up.

“In summary, we are pleased,” says Klein about the quarter and the year. He also notes that he is “excited.”

It’s party time in Redmond!

2:38 pm: Peppy Bill is back, going through the numbers. Solid!

Klein then moves onto the future and he remains “excited.”

Now, it is onto Q&A from the analysts.

This is where I zone out a little and start to wonder if a doughnut is a wise choice for an afternoon tasty treat.

That would make me “excited.”

Lots of congrats, which only makes me hungrier. One analyst asks why it was so much stronger than expected.

Klein: The economy has improved, businesses are expanding, peeps love them some cloud.

There is a question about how the troubled Yahoo search partnership is going. Klein promises some improvement by the end of the year.

Still, bummer!

But it is quickly back to happy, with a question about the strength of Xbox and its subscribers.

“It’s fantastic,” says Klein.

Like I said, sweeeeeeet.

Here’s a handy helper for those following the fate of the Hulu premium online video service, whose noisy efforts to sell itself have gotten a lot of attention of late:

“In preliminary talks” = “hawking itself to one of a half dozen big moneybag tech companies who will visit with Hulu’s bankers and management to see its presentation at Morgan Stanley’s office in Century City in Los Angeles.”

Last Friday, for example, that meant a look-see for Microsoft execs, to show the software giant the story of how paying top dollar for the popular Hulu would be a great investment.

This week, sources said, Yahoo will get the expected gander at the books too, among the other companies targeted by Hulu as part of a sales process in its very early stages.

Among those companies on the short list, sources said, along with Microsoft and Yahoo are: Google, Verizon, AT&T and Amazon.

None of these should come as a surprise, since they all have a big interest in the digital distribution of content business.

Google is perhaps the most interesting and difficult of the group, due to both its massive YouTube unit and the even more massive interest by government regulators about its disturbing massiveness.

Amazon is the company that seems most suited as a Hulu buyer, since it already makes its business selling and distributing content. In addition, Hulu CEO Jason Kilar was a former exec — bringing a certain level of familiarity and presumably much less of the grumpy disgruntlement that he experienced with Hulu’s current media giant owners.

Microsoft seems like the longest shot and least enthusiastic, although it certainly could afford it.

As for Yahoo: Good lord, it needs something sexy to tell weary investors.

Not in the initial round, but other possible acquirers Hulu is targeting: Facebook, Netflix, Samsung and Liberty Media.

And definitely not among those kicking the tires: Disney, News Corp. and Comcast, the trio of partners who own Hulu, along with Providence Equity Partners.

The big question, of course, is whether media-focused Apple — a notorious buyer of almost nothing — would be interested in Hulu.

These blind dates with the best possible buyers will presumably give each insight into Hulu’s business and give Hulu information on what they are looking for.

Sources who have heard the pitch said Hulu is positioning itself as an inevitable competitor to cable, which seems an odd position to take, unless it can get regular access to the kind of top-drawer content that consumers want.

And that will be the most important issue for anyone buying Hulu: The time and terms of rights to the television and movie content on the site, which has been a critical part of its success.

Buyers I have interviewed said Hulu has to offer at least an 18-month license for its content and a pile of rights to hit shows to differentiate itself from competitors.

As Peter Kafka wrote, Hulu buyers would indeed get exclusive content, but with strings attached.

He also noted that the latest content licenses for Hulu’s owner/partners — Disney’s ABC and News Corp.’s Fox — have recently been completed, deals that will stay intact if Hulu is sold.

Unlike Netflix, which has had to pay top dollar for a small pile of premium content while deftly using a large archive of older content to attract subscribers, Hulu’s success has had a lot to do with more access to popular current shows offered by its media giant owners.

Those shows include TV hits such as “The Office” and “Glee.”

That access has become a point of contention with those owners, who have differed with Hulu management about what comes next for the mostly advertising-supported site, even though its slick product has been a clear hit with consumers.

Of course, some speculate that Hulu might not sell at all, just as it never went public as it had said it might do previously. In that case, it will be interesting to see what will become of Hulu once the music stops.

(And, if anyone would like to email me the Hulu presentation or notes on it, please do, so I can formulate a bid myself!)

But, until this deal churns slowly, leakily and loudly forward — let’s enjoy some apt Hulu content. As usual, the fun version of ABBA’s “Dancing Queen” by the kids from “Glee” was not available on the site.

Thus, I selected frequent “Glee” guest star Gwyneth Paltrow belting out Joan Jett’s “Do You Wanna Touch Me” on the show, as a good alternate metaphor for the sales process:

Microsoft’s SVP of Strategy and Partnership Hank Vigil will be leaving the software giant to focus on investing in and advising for early-stage start-up companies, according to an internal email from CEO Steve Ballmer.

But the 25-year company veteran, who will departs Microsoft in the fall, will also become a “strategic advisor” to Microsoft.
That’s probably a good idea, since Vigil is one of the company’s most visible and well-liked execs in the tech community, especially in Silicon Valley.

He also is Microsoft’s best-dressed exec, if I might be so bold to say.

Vigil has had wide-ranging jobs all over Microsoft in his many years there.

He has most recently been working directly with Ballmer, according to his company bio, “developing and managing strategic relationships, mergers, acquisitions and investment partnerships with media, consumer electronics, telecommunications, software and Internet companies.”

In that role, Vigil has worked on a range of deals, including with Facebook, Nokia, News Corp. and many others.

Previously, he worked on Microsoft’s digital TV strategy, including the acquisition of WebTV. Vigil also did marketing and business strategy for Office, Word and Excel.

In other words, Vigil knows where all the bodies are buried up at Microsoft’s Redmond HQ! And, presumably, he’ll be keeping that to himself.

Here’s the internal email from Ballmer about Vigil’s departure:

After 25 years at Microsoft, Hank Vigil has decided it’s time to open a new chapter in his life.

Hank has covered a lot of ground, from launching Excel 3 and Office 95, to our early investments in ITV, to helping restructure our relationships with Sun, Time Warner, and Real Networks, to his more recent work helping to drive new investments and partnerships with companies like Yahoo!, Facebook, and Nokia. He’s been a critical strategic advisor and bridge-builder on some of the biggest industry opportunities we’ve dealt with in recent years.

He’ll be staying on until the fall, then he intends to do some early stage investing and advising start-up companies.

While Hank is leaving the company, he’s not going too far. I’m pleased to say that Hank will continue to provide his industry insight and strategic counsel going forward as an advisor to the company.

Please join me in congratulating Hank on a quarter-century of great work, and wishing him the best of luck in his new adventure.

With only a week to go before the ninth D: All Things Digital conference debuts in California, we’re announcing the addition of Microsoft’s Steven Sinofsky to an already heavy-duty line-up of speakers.

One of the five Microsoft presidents–it’s kind of like the kingdoms in HBO’s “Game of Thrones,” but without big, clangy swords–he runs the flagship Windows and Windows Live division.

More importantly, Sinofsky is the guy who overhauled Office and then led the team that bailed Microsoft out of the Vista debacle.

The longtime company veteran–who joined Microsoft in 1989 as a software design engineer–will talk about the future of Windows in the era of all kinds of new devices and the cloud.

If you want to get some insight into his thinking, Sinofsky also wrote a book about the making of Windows 7–titled “One Strategy: Organization, Planning, and Decision Making”–that’s a very compelling read well beyond management wonk types.

We expect Sinofsky to be just as interesting onstage at D9 too, along with other top tech and media speakers including Google’s Eric Schmidt, Bob Iger of Disney, Silicon Valley legend Marc Andreessen, Netflix’s Reed Hastings and more.

You’d think there would be a party in Redmond, Wash., today, as software giant Microsoft soundly beat Wall Street expectations in its third-quarter earnings released earlier today.

Microsoft said it had revenue of $16.43 billion for the quarter ended March 31, 2011, which was up 13 percent from a year ago. Net income was $5.23 billion, or 61 cents per share, a rise of 31 percent and 36 percent, respectively.

The surge was led by sales of Office, Kinect and Xbox and a stronger economy.

But there are shadows, too, as results were dragged down by weaker revenues for its flagship Windows unit.

The report comes as Microsoft’s stock continues to lag, declining 14 percent for the year.

Buzz kill!

BoomTown livedblogged the call for Wall Street analysts:

2:30 pm PT: Peter Klein, Microsoft’s CFO, who sounds super peppy, outlined the strong quarter, especially for its Office products.

He also mentioned some glitches, such as Microsoft’s still-struggling efforts to increase revenue per search (RPS) in its longtime search and online advertising partnership with Yahoo and the slower growth of the PC sector upon which the software giant’s Windows relies.

PC should stand for “possibly crappy,” but good-boy Klein did not say so.

Investor relations dude Bill Koefoed also read through the news, sounding at times like a sports announcer on a cable television network.

“Quuuuaaadrupled…,” he intoned about one part of Microsoft’s business.

This all went on for a while, since Microsoft has a lot of divisions. Servers & Tools. Online Services. Entertainment and Devices. Fashion & Cute Tops.

Okay, not that one, but a girl can dream.

It was all fun and games until Koefoed got to the Yahoo problem, which Yahoo CEO Carol Bartz had used as a cudgel in her earnings report recently.

Yes, it is a bummer. But soon it was back to the happy land of Xbox!

Klein said he was pleased with the results in a jaunty manner, which made me desperately wish Microsoft CEO Steve Ballmer led the call.

Because he’s always one obnoxious query away from a volcanic popping off.

Which is why I love those Yahoo calls and Bartz.

Buzz kill!

2:54 pm PT: That was fast–the call was quickly into questions.

The first is about COGS–cost of goods sold–and how it impacts gross margins.

Klein said the expenses were volume driven. I’d explain, but then I would fall asleep.

The next question was about stock buybacks.

That might get the stock up. Yeah, said Klein, they’ll keep doing that–not that it has helped much on the share price front.

More and more questions, about the PC market, the issues at Yahoo (let’s get that RPS up!), the Windows Phone 7 business.

I’ll be honest, I was a bit bored and started reading a riveting Business Insider interview with TechCrunch’s Michael Arrington on his myriad conflicts of interest related to his tech investing while also blogging as a news guy.

Whatever you think about him, that dude is good copy.

Wait, back to growth rates for Office!

It’s going great, said Klein (hey, maybe Arrington will invest!).

The call wraps up on news of an upcoming investor conference, being held near Disney World.

Oooh, party time!

Software giant Microsoft soundly beat Wall Street expectations in its third-quarter earnings released after the market closed today.

Microsoft said it had revenue of $16.43 billion for the quarter ended Mar. 31, 2011, which was up 13 percent from a year ago. Net income was $5.23 billion, or 61 cents per share, a rise of 31 percent and 36 percent, respectively.

Investors were expecting the Redmond, Wash. tech company to have profits of 56 cents per share, up 45 cents per share in the same quarter last year. Revenue was expected to come in at $16.2 billion.

As usual, Microsoft beating of expectations still has not helped its lackluster stock, which is down almost 14 percent year over year.

Its shares are currently down more than two percent in after-hours trading, to $26.09.

That’s due to worries about PC market growth, in the wake of an explosion of tablet and smartphone devices from competitors such as Apple and Google.

Most of Microsoft’s divisions were up in terms of revenue, especially its Xbox, Kinect and Office businesses. That offsetted slowing PC growth, Microsoft said, as well as a 4.5 percent drop in revenue in its flagship Windows and Windows Live division.

BoomTown will be liveblogging the earnings call at 2:30 pm PT.

Until then, here is the official press release:

letterheadFY11Q3 –

The new offices–still void of any computers, desks or chairs–were decked out with red ambient lighting, a DJ was spinning records and guests snacked on a mix of Seattle and San Francisco food. Sourdough and shrimp!

Pincus addressed the 200 or so attendees in front of an exposed brick wall typical of buildings found in the Pioneer Square neighborhood, and he did his best to woo potential engineers with the offer of a great company culture. He also took the liberty of comparing Zynga to one of Seattle’s biggest success stories: Amazon.com.

First was the employee pitch. Like Zynga’s other 1,500 employees in more than 13 offices worldwide, Seattle engineers and product managers will have a lot of autonomy in a corporate culture Pincus likened to a confederation of entrepreneurs who get to act as their own CEO.

Additionally, he compared the company’s ambitions to Amazon’s.

The analogy was easy to make given his proximity to the retail giant, but also because one of Amazon’s first VPs of engineering, Neil Roseman, will be the Zynga VP in charge of building the Seattle office.

However, it was mostly Zynga’s bigger goal that he was referring to.

“Amazon built shop….We want to build play. If we do our jobs right, playing games with your friends will be simple,” he said.

With popular Facebook titles such as FarmVille, CityVille, Zynga Poker and Mafia Wars, Pincus said, roughly 250 million people play Zynga games on a monthly basis. In all, they generate five terabytes of information a day, up from one terabyte a day five months ago. The number of social connections the players have made has soared to eight million from three million in the same time period.

In an interview after his general remarks, Pincus contended that talking about play instead of games changes the social stigma. “If you spent part of your day playing games, people might think you’ve wasted your time. But if you said you spent your day playing, people are envious,” he said, noting of the old saying, “It’s all work and no play. Not, all work and no games.”

The idea goes beyond Amazon’s association with shopping. Google has an association with search, Facebook with share, and YouTube with watch. “[Play is] one of the verbs I’d bet on,” he said.

So, how big is playing?

Pincus estimates that it’s massive.

There will be four billion devices that will be connected to each other through social networks, and half of them will engage in play. “We are very optimistic with where play will go in the future.”

However, as the industry matures, there’s a natural contradiction taking place. The simplicity of Zynga’s games made it easy for a wide audience to play (not just core gamers). But as those players develop and sharpen their gaming skills, Zynga and other social-game makers will be challenged to create more complex quests to keep them entertained. By introducing more difficulty, it will inherently narrow the company’s audience.

“Yes, that’s a challenge,” Pincus said. “But great games are Shakespearean. They should be all things, to all people.”

He argues that one game should be enjoyable for his niece, nephew and himself simultaneously. But that has been the challenge for the game industry. Companies end up catering to the audience that is the most vocal and spends the most money. That’s why the console game business trends toward hardcore gamers.

“It becomes harder and harder,” he said.

However, there are exceptions. Nintendo developed something that no one knew they needed or wanted, and, he said, Apple’s Steve Jobs constantly comes up with products people want, as opposed to giving them what they asked for.

“No one was screaming for the Wii,” he said, but now you see grandmothers Wii bowling with their granddaughters.

Last night in Redwood City, Chris Shipley–who used to run the famed Demo conference–had a ribbon-cutting for Studio G, a new office for her Guidewire Group aimed at the start-up community.

According to Guidewire: “Studio G is destined to become the high-energy hub of a global network of entrepreneurs and their mentors and partners working together to build the next great wave of high-value technology companies.”

At the opening party for Studio G, Shipley described the business accelerator as a drop-in and co-working space, a community center with a program series for early-stage companies.

There are lots of these kinds of places in Silicon Valley, but All Things Digital wishes Shipley well at this one.

Here’s a short video tour of the place and an interview with Shipley there: