Skype today announced that it is being bought out by Microsoft in a deal worth US$8.5 billion. 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.
“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.”
While Microsoft will continue to invest in and support Skype on non-Microsoft platforms, you can expect to see Skype on Xbox, Windows Phone (already in the works), and other Windows devices and communities (including Outlook and Xbox Live).
Already approved by both boards of directors, the transaction is expected to meet all required regulatory clearances and close sometime later this year.