Microsoft Skype Is Born - $8.5 Billion Skype Acquisition Confirmed Officially

Microsoft is confirming officially the $8.5 billion acquisition of Skype in an all cash transition, already old news to some who’ve been able to read about the deal since yesterday.

The two companies have gone public with the announcement after their respective boards of director approved the agreement.

The move has birthed the Microsoft Skype Division which will continue to be helmed by current Skype Chief Executive officer (CEO) Tony Bates only under a new title.

According to the software giant the new president of the Microsoft Skype Division will report directly to Microsoft CEO Steve Ballmer.

“Skype is a phenomenal service that is loved by millions of people around the world,” Ballmer revealed. “Together we will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world.”

Microsoft Skype will contribute to enhancing the Redmond company’s existing real-time video and voice communications products and services.

According to the software giant Microsoft Skype will come with support for a range of technologies including Xbox, Kinect, Windows Phone, and Windows devices.

Just as important is the fact that customers currently leveraging solutions such as Lync, Outlook, Xbox Live will play nice with Microsoft Skype. The promise from Microsoft is that Skype clients for non-Microsoft platforms will be kept alive.

“Microsoft and Skype share the vision of bringing software innovation and products to our customers,” added Tony Bates. “Together, we will be able to accelerate Skype's plans to extend our global community and introduce new ways for everyone to communicate and collaborate,” Bates said.

Statistics shared with the public reveal that over 170 million connected customers used Skype in 2010, amassing more than 207 billion minutes of voice and video conversations.

“Tony Bates has a great track record as a leader and will strengthen the Microsoft management team. I’m looking forward to Skype’s talented global workforce bringing its insights, ideas and experience to Microsoft,” Ballmer revealed.