Industry News

TMCNet:  Microsoft acquires Skype Technologies (Skype Global)

[October 14, 2011]

Microsoft acquires Skype Technologies (Skype Global)

Oct 14, 2011 (Datamonitor Financial Deals Tracker via COMTEX) -- Microsoft Corporation, a US-based developer and licensor of software products, has acquired Skype Technologies S.A. (Skype Global S.a r.l.), a Luxemburg-based Internet communications company.

Update on June 17, 2011: Microsoft has received US antitrust approval to acquire Skype.

Announcement (May 10, 2011): Microsoft has entered into a definitive agreement to acquire Skype for $8,500 million in cash from the investor group led by private equity firm Silver Lake Partners.

The agreement has been approved by the Board of Directors of both Microsoft and Skype.

Other members of the selling investor group include eBay International AG, CPP Investment Board, Joltid Limited in partnership with Europlay Capital Advisors and Andreessen Horowitz.

Following the acquisition, Skype will become a new business division within Microsoft, and Microsoft will continue to invest in and support Skype clients on non-Microsoft platforms.

Skype was founded in 2003, and acquired by eBay in September 2005, and then acquired by an investment group led by Silver Lake in November 2009.

Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal advisor to the founders of Skype Global and Joltid. Brunswick Group LLP is acting as PR advisor to Skype Technologies. Sullivan & Cromwell LLP is acting as legal advisor to Skype Global and Silver Lake on the transaction. Covington & Burling LLP and Simpson Thacher & Bartlett LLP are acting as legal advisors to Microsoft.

Deal Value (US$ Million) 8500 Deal Type Acquisition Sub-Category Majority Acquisition Deal Status Completed: 2011-10-14 Deal Participants Target (Company) Skype Global S.a.r.l.

Acquirer (Company) Microsoft Corporation Vendor 1 (Company) Europlay Capital Advisors, LLC Vendor 2 (Company) Joltid Limited Vendor 3 (Company) eBay International AG Deal Rationale The acquisition will increase the accessibility of real-time video and voice communications, bringing benefits to both Microsoft and Skype consumers and enterprise users and generating significant new business and revenue opportunities.

The combination will extend Skype's brand and the reach of its networked platform, while enhancing Microsoft's existing portfolio of real-time communications products and services.

Skype will also support Microsoft devices like Xbox and Kinect, Windows Phone and a wide array of Windows devices, and Microsoft will connect Skype users with Lync, Outlook, Xbox Live and other communities.

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