EU expected to approve Microsoft’s Skype deal this week

By Tom Warren, on 6th Oct 11 8:03 am with 9 Comments

Microsoft Skype deal

Microsoft is expected to win EU approval for its $8.5 billion acquisition of Skype.

The deal will be announced by the EU competition commissioner, Joaquín Almunia, by Friday October 7. The Financial Times reported on Wednesday that Almunia has made his decision and that Microsoft will not be subjected to a second-phase investigation. An Italian software company filed a complaint in Europe over Microsoft’s purchase of Skype in late September. Messagenet, a software firm based in Milan, voiced concerns that Microsoft may attempt to bundle Skype with its Windows operating system. The complaint could have delayed Microsoft’s deal in Europe. Microsoft is still waiting on results from competition reviews in Russia, Uktrain, Serbia and Taiwan.

The software giant announced its plans to purchase Skype in May. Microsoft’s deal is valued at $8.5 billion cash and will see Skype CEO Tony Bates assume the title of president of the Microsoft Skype Division at the firm. Bates will report directly to Steve Ballmer. Microsoft has previously promised that 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.

The Federal Trade Commission (FTC) approved the U.S. side of the deal in June. Microsoft’s European Commission approval will see Microsoft part with $8.5 billion for its purchase of Skype. The software maker has made assurances that it has no plans to alter Skype’s branding. Microsoft is getting “one of the greatest brands in the consumer Internet space,” said Skype CEO Tony Bates in a recent interview. “It is a verb. People talk about it in that way. They say Skype me.” Bates reassured Skype users that nothing will change, “you can expect strong commitment to the brand,” he added.

Skype currently has 170 million connected users and saw over 207 billion minutes of voice and video conversations in 2010 alone. Microsoft’s promise for Windows Phone, Xbox and Kinect Skype integration confirms that the company will look to use Skype broadly across its products. Skype was originally founded in 2003 and acquired by eBay in September 2005. An investment group led by Silver Lake acquired Skype in 2009. Microsoft refused to provide any comment on Friday regarding the FTC approval

  • Anonymous

    I really hope so :o

  • Jinge

    Great news! Now we are just waiting for a W8 and WPhone update! Tango may integrate Skype capabilities??

  • Daikaiju

    At the bottom of the second paragraph you have Uktrain instead of Ukraine.

  • Anonymous

    Doubt Tango will integrate Skype. I bet we will put up with an app for a year (just like we did with WL Messenger) and when WP8 launches we will see similar Skype integration into the Messaging, Phone, and People Hubs.

    Hopefully it is not too late for the Windows 8 team to integrate Skype into the final product as well. (I do not mean bundling. I simply hope that, much like Facebook on Windows Phone, you can set up Skype on Windows 8 to integrate with your hubs).

    Xbox is in kind of a wierd place right now (from what I have observed of the new dashboard update). “Xbox” on Phone, PC, and TV is more or less the “Games + Music + Video” Hub. On the TV however Microsoft is cramming all of (what would normally be considered “Windows” and not “Xbox”) the non-entertainment apps/services like Messaging, People (Facebook app), Pictures,, Search (aka Bing) etc. into the “Xbox Hub” and its kind of messy when you see how the other two platfroms are being executed. Don’t know a particularly good way to resolve the differences

    • Anonymous

      xbox 360 kind of messy? what are you talking about? all those accessory programs are under apps now, media is in media, games are in games.  The new dashboard unmesses it so things are in natural spots.  You can use the kinect, controller or voice to navigate the dashbaord now as well. Its the most uniform dashboard i’ve seen and built very much on metro ui / ease of use and speed of access.  Glance and go – to games, to facebook, to netflix to youtube or whatever it is you want.

  • Anonymous

    I think this why why MS was waiting for the public beta to include the ‘Chatter’ service, which will integrate all the social networks and services (Skype/Windows Live/Xbox/Twitter/Facebook).

  • Emi Cyberschreiber

    this is amazing! as long as idiot companies like the Italian one, wont be like “we will complain about it”

    this world is so stupid though, its not like EU and US are giving the 8 billion dollars to adquire skype. Microsoft should buy it like they would buy a candy. or now Microsoft need aprove to buy a candy.

    oh well. hope it will say “microsoft division” soon.

  • Anonymous

    Can anyone tell me why they get Disqus … sometimes?

  • Grammarfanatic

    typo UKTRAIN is Ukrain