Microsoft Acquires Skype

Microsoft and Skype announced that they have entered into a definitive agreement whereby Microsoft will acquire Skype for $8.5 billion cash. The union will increase Skype’s brand and the reach of its networked platform while boosting Microsoft’s current portfolio of real-time communications products and services.

Skype will be integrated into Microsoft devices like Xbox and Kinect, Windows phones and Windows devices and Microsoft will connect Skype users with Outlook, Xbox Live, Lync and other communities. Microsoft will continue to support Skype users on non-Microsoft platforms.

The acquisition is subject to regulatory approvals and conditions. Skype and Microsoft hope to have it all finalized within this year.