Agreement has been reached for Microsoft to buy internet phone-call company Skype in a £5-billion ($8.5-billion) deal.
Many analysts are saying it's a huge overpayment for the internet telephony company.
Skype has 660-million users worldwide and offers free and paid-for voice calling and video calling on various platforms including iOS.
An announcement from Skype CEO Tony Bates says once the deal is complete, Skype will operate as a business division of Microsoft and he'll be staying on as Microsoft Skype President.
Read the full announcement after the jump:
"I’m excited to announce that Skype and Microsoft have entered into a definitive agreement whereby Microsoft will acquire Skype for $8.5 billion US. Once the acquisition closes, Skype will become a new business division of Microsoft. It is an exciting day for all of us at Skype – we’ve taken a significant step towards realising our vision of making the world a better, more connected place.
I believe this acquisition is the very best way to extend Skype’s reach and will allow us to bring real-time video and voice communications to more people around the world than ever before. The combination of Skype and Microsoft will directly benefit all of you who use Skype by ushering in a new era of generative ways for everyone to communicate.
What I love most about this company are the people who have made Skype a verb. Not only the team here at Skype and our partners, but everyone like you who uses Skype every day – you are the people who have made Skype what it is.
Once the acquisition is complete, Skype will operate as a new business division of Microsoft, and I look forward to working with the team as president of Microsoft Skype to write the next chapter of the Skype story. Onwards!"
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