Breaking: Microsoft Acquires Skype

Microsoft Corp. and Skype Global yesterday announced that they have entered into a definitive agreement under which Microsoft will acquire Skype, the leading Internet communications company, for $8.5 billion in cash from the investor group led by Silver Lake. The agreement has been approved by the boards of directors of both Microsoft and Skype.

The acquisition will increase the accessibility of real-time video and voice communications, bringing benefits to both consumers and enterprise users and generating significant new business and revenue opportunities. The combination will extend Skype’s world-class brand and the reach of its networked platform, while enhancing Microsoft’s existing portfolio of real-time communications products and services.

I believe this move is very good for Microsoft as a company. It will further strengthen Microsoft lead in the Unified Communication quadrant. The acquisition will bring benefits to enterprise users, small businesses and consumers and  also generate significant new business and revenue opportunities.

See the press release for more details on the deal.