Microsoft closes Skype deal

Microsoft has announced that its deal to by web communications outfit Skype is formally closed.

Microsoft paid $8.5 billion to buy the VoIP outfit in a deal many thought overvalued. Microsoft has the cash though - things are less expensive when you can afford them.

So Skype is now a division of Microsoft.and are now "accelerating both companies’ efforts to transform real-time communications for consumers and enterprise customers," which for those of us who are Skype users is a scary prospect.

Skype CEO Tony Bates will assume the title of president of the Skype Division of Microsoft , reporting directly to Steve Ballmer. While the Skype division will continue to offer its current products to millions of users globally, "Longer term, Skype will also be integrated across an array of Microsoft products to broaden Skype’s reach and accelerate its growth as a fundamental way people communicate online," Microsoft said in a statement.

“By bringing together the best of Microsoft and the best of Skype, we are committed to empowering consumers and businesses around the globe to connect in new ways,” Bates said. “Together, we will be able to accelerate Skype’s goal to reach 1 billion users daily,” Bates said.