About This Deal

Microsoft Corporation acquired Skype for $8.5 billion, a transaction announced in May 2011, structured as all cash.

Skype operates in Communications, is based in Luxembourg. Microsoft agreed to acquire Skype, the internet voice and video communications service, for $8.5 billion in cash from an investor group led by Silver Lake. Skype then had about 170 million connected users and had carried over 207 billion minutes of voice and video calls in 2010. Skype became a new Microsoft business division, with CEO Tony Bates reporting to Steve Ballmer.

Broadens access to real-time voice and video communications and connects Skype with Xbox, Kinect, Windows Phone, Lync, Outlook and Xbox Live.

Deal Terms

Acquirer
Microsoft Corporation
Target
Skype
Value
$8.5 billion
Date
May 2011
Type
Acquisition
Status
Official-source — no SEC filing

Transaction Details

Target HQ
Luxembourg
Segment
Communications
Structure
All cash
Announced
May 10, 2011

In Their Words

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.Steve Ballmer, CEO, Microsoft

Advisors

Advisory firms were not disclosed for this transaction.

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Sources: Press release ↗ · Last updated July 16, 2026

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