Microsoft closes Skype acquisition

Former Skype CEO Tony Bates is now president of the Skype Division of Microsoft

Microsoft said Friday that it has closed its $8.5 billion acquisition of Skype, the Internet telephony provider in Luxembourg, and the company will function as a new business division within Microsoft.

Skype CEO Tony Bates will assume the title of president of the new Skype Division immediately, reporting directly to Microsoft CEO Steve Ballmer.

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The acquisition is however still under review in a few countries, and will be completed in those countries when such reviews are closed, Microsoft said without naming the countries. The deal was cleared by the Department of Justice in the U.S. in June and antitrust regulators in the European Union this month.

Microsoft announced in May that it had agreed to acquire Skype, and said at the time that it would be integrated with Microsoft's products, without affecting availability of the popular Internet telephony application on platforms from competitors.

The Skype division will continue to offer its current products to millions of users globally, Microsoft said on Friday. In the long term, Skype will also be integrated across an array of Microsoft products to broaden Skype's reach and accelerate its growth as a fundamental way for people to communicate online, it added.

Founded in 2003, Skype was acquired by eBay in September 2005, and then acquired by an investment group led by Silver Lake in November 2009. Other members of the selling investor group led by Silver Lake include eBay International, CPP Investment Board, Joltid in partnership with Europlay Capital Advisors, and Andreessen Horowitz, Microsoft said

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's email address is john_ribeiro@idg.com.

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