Microsoft Completes $8.5B Skype Purchase

Microsoft announced that it has completed its purchase of the online chat serve Skype on Friday. The deal cost Microsoft US$8.5 billion and makes Skype a new business division in the company.

Microsoft buys Skype

The purchase deal was first announced in May with the approval of the boards of directors from both companies. Microsoft bought Skype from the online auction company eBay.

At the time of the announcement, Microsoft said in a statement, “Skype will support Microsoft devices like Xbox and Kinect, Windows Phone and a wide array of Windows devices, and Microsoft will connect Skype users with Lync, Outlook, Xbox Live and other communities.”

Skype CEO Tony Bates is taking on the role of president for Microsoft’s Skype Division and will report directly to CEO Steve Ballmer.

In response to concerns that Microsoft would stop supporting Skype on what it sees as competing platforms, Mr. Ballmer said, “We will continue to invest in Skype on non-Microsoft client platforms.”