Microsoft to purchase Skype for $8.5 billion.

Microsoft has officially announced that it is purchasing VoIP provider Skype for the sum of $8.5 billion in an all-cash deal. Microsoft claims that it will bring the service to the whole suite of Microsoft products, while still supporting it on other platforms.
Originally reported by The Wall Street Journal yesterday, the deal will bring Skype's 170 million users under the Microsoft umbrella. Microsoft intends to bring Skype services to Xbox and Kinect, Windows Phone, and a wide array of Windows devices. Microsoft will connect Skype users with Lync, Outlook, Xbox Live and other networks. Mac and Android users should not worry as Microsoft has committed to continue developing the service on non-Microsoft platforms.
"Skype is a phenomenal service that is loved by millions of people around the world," said Microsoft CEO Steve Ballmer. "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."
Skype has had large companies purchase it before. In 2005, eBay paid $2.6 billion for the company, and later sold the majority off to investors and venture capitalists in 2009. This acquisition by Microsoft is Microsoft's largest purchase to date.
Microsoft will set up Skype as a separate business division within the company, and has appointed Skype CEO Tony Bates as the president of the new division.
The purchase is expected to close by the end of the year, once it has gone through the necessary regulatory proceedings. Microsoft is expected to use this purchase to bolster its Windows Phone 7 platform with VoIP calling, something that the wireless carriers will likely fight since it will encroach on their lucrative voice plan revenues.
(via mobileburn)