Microsoft has confirmed an agreement to buy Skype for USD 8.5 billion in cash from the investor group led by Silver Lake. Microsoft will add Skype to its consumer devices like Xbox and Kinect, the Windows Phone platform and communications products such as Lync and Outlook. The company said it will also 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. The takeover price reflects the strong growth at Skype since Ebay sold control of the VoIP provider in November 2009. Ebay sold 70 percent of Skype to the investment group led by Silver Lake in a deal valuing the company at USD 2.75 billion. Since then Skype has increased its monthly calling minutes by 150 percent. Skype filed for an IPO last year, and its last SEC filing in March shows the VoIP provider finished 2010 with 663 million registered users, up from 474 million a year earlier. The average number of users connected each month was 145 million in the fourth quarter of 2010, while paying customers reached an average 8.8 million per month. Subject to regulatory approval, the takeover by Microsoft is expected to close by the end of this year.
