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Press Release: Microsoft Corp. and Skype Global  today announced that they have entered into a definitive agreement under which Microsoft will acquire Skype, the leading Internet communications company, for $8.5 billion in cash from the investor group led by Silver Lake. The agreement has been approved by the boards of directors of both Microsoft and Skype.

The acquisition will increase the accessibility of real-time video and voice communications, bringing benefits to both consumers and enterprise users and generating significant new business and revenue opportunities. The combination will extend Skype’s world-class brand and the reach of its networked platform, while enhancing Microsoft’s existing portfolio of real-time communications products and services.

With 170 million connected users and over 207 billion minutes of voice and video conversations in 2010, Skype has been a pioneer in creating rich, meaningful connections among friends, families and business colleagues globally. Microsoft has a long-standing focus and investment in real-time communications across its various platforms, including Lync (which saw 30 percent revenue growth in Q3), Outlook, Messenger, Hotmail and Xbox LIVE.

Skype will 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. Microsoft will continue to invest in and support Skype clients on non-Microsoft platforms.

“Skype is a phenomenal service that is loved by millions of people around the world,” said Microsoft CEO Steve Ballmer. “Together we will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world.”

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

“Microsoft and Skype share the vision of bringing software innovation and products to our customers,” said Tony Bates. “Together, we will be able to accelerate Skype’s plans to extend our global community and introduce new ways for everyone to communicate and collaborate,” Bates said.

“Tony Bates has a great track record as a leader and will strengthen the Microsoft management team. I’m looking forward to Skype’s talented global workforce bringing its insights, ideas and experience to Microsoft,” Ballmer said.

Speaking on behalf of the investor group that sold Skype to Microsoft, Egon Durban, managing director of Silver Lake, said: “We are thrilled with Skype’s transformation during the period of our ownership and grateful for the extraordinary commitment of its management team and employees. We are excited about Skype’s long-term future with Microsoft, as it is poised to become one of the world’s most dynamic and comprehensive communications platforms.”

Founded in 2003, Skype was acquired by eBay in September 2005, and then acquired by an investment group led by Silver Lake in November 2009. Skype has made impressive progress over the past 18 months under Silver Lake’s leadership, increasing monthly calling minutes by 150 percent, developing new revenue streams and strategic partnerships, acquiring the intellectual property powering its peer-to-peer network, and recruiting an outstanding senior management team.

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

The acquisition is subject to regulatory approvals and other customary closing conditions. The parties hope to obtain all required regulatory clearances during the course of this calendar year.

About Skype
Skype is communications software whose purpose is to break down barriers to communication. With an Internet-connected device, families, friends and colleagues can get together for free with messaging, voice and video. At low cost, they can also call landlines or mobiles virtually anywhere in the world. Skype has recently introduced group video, allowing groups of more than two people to do things together whenever they’re apart.

Founded in 2003 and based in Luxembourg. Skype can be downloaded onto computers, mobile phones and other connected devices for free.

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Skype today announced it has entered into a definitive agreement to acquire Qik, a provider of mobile video software and services that enable individuals to capture, instantly share and preserve great moments on video from anywhere. Qik has 60 employees, and is headquartered in Redwood City, California and has an office in Moscow, Russia. The transaction is expected to close in January 2011. Terms of the acquisition will not be disclosed.

Qik was founded in 2006 and offers innovative and flexible solutions to capture and share video with anyone across mobile devices, the web, and desktop platforms. Videos can be shared in real time or stored so moments can be viewed later, allowing for video messaging, sharing and archiving. The Qik service is available on over 200 mobile phones across the Android, iPhone, Symbian, Blackberry and Windows Mobile platforms, and comes pre-loaded on a wide variety of mobile handsets through partnerships with leading handset manufacturers and carriers.

Both Skype and Qik have a common purpose of enriching communications and sharing with video, across any device. The acquisition of Qik helps accelerate Skype’s leadership in video by adding recording, sharing and storing capabilities to Skype’s product portfolio. Through this acquisition, Skype will also be able to leverage the engineering expertise that is behind Qik’s Smart Streaming™ technology, which optimizes video transmission over wireless networks.

“The Qik team has delivered exceptional video experiences for its mobile partners and millions of end users across a range of devices,” said Tony Bates, Skype’s Chief Executive Officer. “Skype’s software enables an estimated 25 percent of the world’s international long distance voice calling minutes*, and approximately 40 percent of those Skype-to-Skype calls are happening over video. Qik’s deep engineering capabilities and strong mobile relationships will be an impressive complementary fit with Skype.”

Together, Skype and Qik will focus on providing a richer, more integrated experience that will allow people globally to share experiences in real-time video across different platforms, as well as, store those moments so they can be viewed anytime later.

“Qik has worked very hard to solve complex problems that allow millions of people everyday to take advantage of sharing their lives with those people who are most important to them,” said Vijay Tella, Chief Executive Officer of Qik. “Joining Skype allows Qik’s team to unite with Skype’s talented team to develop new and innovative products for our customers and partners.”

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Twitter users on Thursday will, for the first time, be able to make voice calls directly to each other through the microblogging service.

A new third-party offering from Jajah known as Jajah@call is expected to go into beta Thursday morning that will allow Twitter users to initiate a two-way voice chat with other users by typing “@call @username”–where “username” is someone’s Twitter ID–into any Twitter client. During the beta period, the company said, the calls will be limited to two minutes, but the company will evaluate that length during beta. However, it sees the two minute period–after which the call will end–as “the verbal equivalent of a tweet.”

According to Jajah, an Internet communications provider with tens of millions of users, the service will allow a user to place a call to any other user, so long as the second person follows the first on Twitter and both have Jajah accounts. The service is free to use and is expected to work on any Twitter-enabled device, from PCs to smart phones.

One important element of the service is that users can keep their phone numbers private, yet be able to have voice chats with just about anyone on Twitter. To be sure, since the calls are initiated by one person, the recipient may well not be online, or may choose to ignore the call if they don’t want to talk.

There are currently several applications that allow users to create voice-to-text Twitter posts–known as tweets–but it does not appear that anyone has yet made it possible to initiate voice communications directly between Twitter users.

Coming on the heels of the announcement earlier this week that Facebook users will now be able to communicate with each other via voice–using a third-party application from Vivox–it’s clear that there is a strong interest, among service providers, at least, in taking leading social networks beyond strictly text communications. Whether large numbers of users choose to get on board is unknown at this point, of course. And given that neither the Facebook nor the Twitter voice services are being provided by the social networks themselves means that some users will choose not to get involved for fear of privacy, stability or other concerns.

Still, if these third-party services end up being successful, it would be natural to expect that Facebook and Twitter may decide they need to step up and directly embed such technologies into their offerings. And there is a precedent for such a move. After Vivox began offering Second Life users a third-party voice solution, the virtual world’s publisher, Linden Lab, decided it needed to take advantage of the technology. Today, thanks to a formal partnership, Vivox’s voice service is formally integrated into Second Life.

And while it may be some time before such a thing happens with either Facebook or Twitter, or any other major social network, one would have to think that it’s only a matter of time.

Via our friends over @ CNET

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 The official Skype app will be in the Apple App Store Tomorrow, March 31st, and Blackberry users can expect to see one around May of this year. 

The iPhone’s Skype feature set includes free Skype to Skype calls, SkypeOut support, a pretty interface that is keeping with the iPhone interface, and instant messaging. You can also take a picture from within the app, and accept conference calls.  The app will also work on 2G  iPod Touches that have the external mic. 

Caveats are:  only being able to use on a wi-fi connection, as there is a ban on any VoIP on a 3G network, no text messaging, file transfer, or access to your Skype voicemails. 

I’ve been using the Fring app for a while now, and it’s a great multi-protocol client that supports talk, chat, and Skype already….jus sayin.

image from Mashable

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