Tony Bates

Microsoft Corp. and Skype Global S.a r.l have entered into a definitive agreement under which Microsoft will acquire Skype 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. eBay had acquired Skypein 2005 under Meg Whitman approximately $2.6 billion. It then sold 70% of Skype for $1.9 billion in 2009 to an investor group led by Silver Lake that included Index Ventures, Andreessen Horowitz and the Canada Pension Plan (CPP) Investment Board in a deal valuing the business at $2.75

Facebook and Google are separately considering acquisition or partnership deals with Skype, according to sources speaking to Reuters. Facebook chief Mark Zuckerberg has been in discussions concerning a possible purchase, one of the sources indicated, a deal that could be worth between $3 billion and $4 billion.