Nothing but negotiation

The Gap Partnership

Microsoft to acquire Skype

Microsoft is set to acquire voice communication specialist Skype.

11 May 2011

Voice over IP (VOIP) specialist firm Skype is to be acquired by software giant Microsoft.

Business negotiations have resulted in the company responsible for Windows offering $8.5 billion (£5.1 billion) for the VOIP services provider.

The move was welcomed by Skype's chief executive officer Tony Bates, who expressed his excitement on the firm's blog.

"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," he said.

Mr Bates went on to state that if the deal gains regulatory approval, Skype will continue to operate as a new business division of Microsoft.

He added that the acquisition will benefit those using VOIP services, as it will usher in a new wave of "generative" forms of commnunication.

According to a Reuters report, which cited the comments of a source close to the issue, Skype's owners will see a huge windfall from the outcome of these sales negotiations, gaining more than $5 billion from the deal.

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