Microsoft confirms takeover of Skype
Baku, May 10 (AZERTAC). Microsoft has confirmed that it has agreed to buy internet phone service Skype.
The deal will see Microsoft pay $8.5bn (£5.2bn) for Skype, making it Microsoft`s largest acquisition.
Luxembourg-based Skype has 663 million global users. In August last year it announced plans for a share flotation, but this was subsequently put on hold.
Internet auction house eBay bought Skype for $2.6bn in 2006, before selling 70% of it in 2009 for $2bn.
This majority stake was bought by a group of investors led by private equity firms Silver Lake and Andreessen Horowit.
Microsoft chief executive Steve Ballmer said: "Skype is a phenomenal service that is loved by millions of people around the world.
"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."
Skype will now become a new division within Microsoft, and Skype chief executive Tony Bates will continue to lead the business, reporting directly to Mr Ballmer.
Analysts say Microsoft`s aim in buying Skype is to improve its video conferencing services.
Although the price tag of $8.5bn will not stretch the US giant, some experts have questioned whether it is paying too much for a company that has struggled to turn a profit.
Skype was founded in 2003.
Calls to other Skype users are free, while the company charges for those made to both traditional landline phones and mobiles.
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