European Commission Approves Microsoft’s Skype Bid
18/10/2011
The European Commission has approved Microsoft Corporation’s proposal to buy internet voice and video communication provider Skype for $8.5 billion (£5.5 billion), stating ‘the deal would not significantly impede effective competition across the single European market.’
Currently Skype boasts more then 650 million global users. It is the dominant provider for online voice and video calls and stands to become Microsoft’s single largest aquasition.
Skype is currently one of the top apps for Apple’s iPhone and Android’s smartphones. Skype can also be used on gaming consoles such as X box.
In a deal first announced earlier this year in May, it is clear that Microsoft’s move is a bid to crack the online market which is currently dominated by search giant Google and social media site Facebook who have both in the past expressed interest in purchasing Skype.
Microsoft’s aim is to boost their online presence and hope that through the purchase of Skype they can expand in the highly competitive online market.
It is understood that under this deal Skype will become a new sector within Microsoft Corporation, with Skype’s chief executive Tony Bates continuing his role.
Brad Smith general council and executive vice president of Microsoft has said in an email statement, ‘it was an important milestone’ as the company has ‘now received clearance from both the United States and the European Union.’
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