Microsoft Completes $8.5 Billion Skype Acquisition

Microsoft has finally completed the Skype acquisition, 5 months after it first announced it. While the boards of both Skype and Microsoft approved the acquisition right away, there was the risk of regulatory authorities playing spoilsport.

Eventually, the deal was approved by regulatory authorities in both the U.S. and Europe. It is still pending regulatory approval in a few small countries.

Skype is a phenomenal product and brand that is loved by hundreds of millions of people around the world. We look forward to working with the Skype team to create new ways for people to stay connected to family, friends, clients and colleagues — anytime, anywhere,said Microsoft CEO Steve Ballmer.

Skype will be absorbed into a new division, and will continue to offer Skype in its current form to consumers worldwide. Going forward, Microsoft plans to integrate Skype’s VOIP and video capabilities into various products like Microsoft Windows, Office, Xbox and Windows Phone.

It may also enter the enterprise VOIP and video conferencing market, which is currently dominated by Cisco.

With the Skype acquisition, Microsoft is also in a better position to compete with Apple’s Facetime and Google’s Google Voice.

Check out the official press release by Microsoft: Microsoft Officially Welcomes Skype

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