Microsoft Company confirms that it has agreed to buy the internet phone service Skype for $8.5 billion or (£5.2bn), which made it as the company’s largest acquisition.
The news about Skype planning to share floatation started in August last year; however, it was subsequently put on hold. In present, the Luxembourg-based Skype has 663 million global users.
Skype was first bought by internet auction house eBay for $2.6 billion last 2006, but it sold 70% of it for $2 billion in 2009.
Majority stake of Skype was bought by a group of investors which was led by the private equity firms Silver Lake and Andreessen Horowit.
Also included in the major shareholder of Skype is the tech-firm Joltid and Canada Pension Plan Investment Board.
Shares in Microsoft ended the day in New York down 0.5% at $25.68. In contrast, eBay – which owns a stake in Skype – saw its share price rally 2.5%.
Steve Ballmer, Microsoft’s chief executive described Skype as a phenomenal service where million of people around the world use and love it.
He added that the collaboration of Skype and Microsoft will create the future of real-time communications so that people around the world can stay connected easily with their family, friends, clients and colleagues anywhere and anytime around the world.
Skype being bought by Microsoft will now be a part of its division, while Tony Bates, Skype chief executive will remain in its position and continue to lead the business, reporting directly to Mr. Ballmer.
One of the analysts from BGC Financial said that the move made by Microsoft is a defensive one and a strategic (–foul word(s) removed–)et to the company. He also added that if Microsoft will put Skype as an additional feature on Windows 8, it will give them an advantage and helps them to sell it in the market.
Some analysts say that Microsoft’s decision to buy Skype is one of their way to improve their video conferencing service.
Other analysts say Microsoft’s aim in buying Skype is to improve its video conferencing services.