1st LD Writethru: Microsoft to buy Skype

1st LD Writethru: Microsoft to buy Skype

SAN FRANCISCO, May 10 (Xinhua) -- Microsoft Corp. on Monday saidit will buy Internet communications company Skype for 8.5 billionU.S. dollars in cash, a bold move for the software giant to explorenew business opportunities.

"Skype is a phenomenal service that is loved by millions ofpeople around the world," Microsoft CEO Steve Ballmer said in astatement.

"Together we will create the future of real-time communicationsso people can easily stay connected to family, friends, clients andcolleagues anywhere in the world," he added.

Microsoft said it has agreed to buy Skype from the investor groupled by Silver Lake, and the deal has been approved by the boards ofdirectors of both companies.

Skype will become a new business division within Microsoft, andSkype CEO Tony Bates will assume the title of president of theMicrosoft Skype Division, reporting directly to Ballmer.

The acquisition is expected to obtain all required regulatoryclearances within this calendar year, Microsoft said.