Microsoft CEO Ballmer's email about Skype acquisition: 'Exciting times!'

By | May 10, 2011, 8:45am PDT

Summary: Here’s Microsoft CEO Steve Ballmer’s email to the Microsoft troops about Microsoft’s Skype acquisition, announced on May 10.

Microsoft announced intentions to buy VOIP/video provider Skype on May 10. Microsoft is paying $8.5 billion in cash, and is counting on the deal to secure regulatory approval before the end of calendar 2011.

Microsoft officials are saying they originally had been thinking about partnering with Skype, but decided in late March/early April to make an unsolicited bid for Skype instead. Microsoft officials said the price was finalized on April 18 The deal was signed last night, May 9, officials said.

Here’s the email that CEO Steve Ballmer sent to the Microsoft troops on May 10 about the deal, sent to me by one of my contacts:

“Today we announced an agreement to acquire Skype, the leading Internet communications company. You can see the full details here.  Pending regulatory review, Tony Bates, CEO of Skype, will report to me as President of our newly formed Skype Division.

“This is a big step forward today for Microsoft and Skype, and one that has substantial benefits for our joint consumer and business customers. On its own, Skype is a powerful consumer brand with more than 170 million connected users, synonymous in many places around the world with voice and video communications. We will help them grow even stronger..

“By bringing together the best of Microsoft with the best of Skype, we will drive a new era in communications. We see a huge desire to do more with video, to make it easier for people to connect from multiple devices, to move from chat to phone to video and back in a way that is easy, natural, and human. We see with Kinect the power of using the biggest screen in the house – the living room TV screen – as the place where people connect with friends and families. We see with Windows Phone 7 the way communication moves from personal to professional in a blink of the eye. And we know that people want more connection and richer communication, across many devices and around the world.

“Together, Microsoft and Skype will deliver that kind of communication and connection. In the future, Skype will support Microsoft devices like Xbox and Kinect, Windows Phone and a wide array of Windows devices, and we will connect Skype users with Lync, Outlook, Xbox Live, Messenger and other communities. I want to call out the success we have had with the introduction of Lync specifically and the value of connecting that to a consumer community of Skype.  And we’ll continue to invest in and support Skype clients on non-Microsoft platforms.

“Today’s announcement underscores who we are as a company.  We are ambitious and forward looking. We have big goals and aspirations. And when we look into the world and see opportunities to do more with technology, we’ll drive toward them and keep pushing. Sometimes we’ll build ourselves, as we’ve done most recently with Bing and Kinect.

“Sometimes we’ll partner or form an alliance to seize the moment, as we’ve done with Yahoo! and Nokia.  And other times we’ll make an acquisition, as we’ve announced today – one that plays to both company’s strengths and opens new opportunities not available otherwise.

“Exciting times!
“Steve”

Read more: With Skype, Microsoft’s multiplatform strategy solidifies

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Mary Jo has covered the tech industry for more than 25 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

Disclosure

Mary-Jo Foley

Freelance journalist/blogger Mary Jo Foley has nothing to disclose. WYSIWYG (what you see is what you get). I do not own Microsoft stock or stock in any of its partners or competitors. I have no business ventures that are sponsored by/funded by Microsoft or any of its partners or competitors.

Biography

Mary-Jo Foley

Mary Jo Foley has covered the tech industry for 25 years for a variety of publications, including ZDNet, eWeek and Baseline. She has kept close tabs on Microsoft strategy, products and technologies for the past 10 years. In the late 1990s, she penned the award-winning "At The Evil Empire" column for ZDNet, and more recently the Microsoft Watch blog for Ziff Davis.

Got a tip? Send her an email with your rants, rumors, tips and tattles. Confidentiality guaranteed.

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RE: Microsoft CEO Ballmer's email about Skype acquisition: 'Exciting times!'
tomlin21-24319035676893835085146735905770 11th Oct
I can see you happen to be placing a a range of attempts mulberry bags into your running a blog web site. Hold submitting the great do the task.Some severely advantageous information in there.
"I want to call out the success we have had with the introduction of Lync specifically and the value of connecting that to a consumer community of Skype. And well continue to invest in and support Skype clients on non-Microsoft platforms."

"Really"?
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HECK YEAH!
bitcrazed 10th May 2011
@kronox@... Heck yeah. Lync rocks - it's one of the reasons our company moved from BPOS to Office365 even though the latter is still in beta!

If MS can introduce Skype into Lync, Messenger, Phone, Kinect/XBox and Windows itself, then they could be onto a VERY good thing indeed.
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And we???ll continue to invest in and support Skype clients on non-Microsoft platforms. WEVAC University
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Very sad news. Skype is the best multi platform communications facility out there.
Now that those days are going to become history, hopefully another such facility will rise and fill in the coming gap.

Josh
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Perhaps, but maybe not.
bitcrazed 10th May 2011
@NotM$Sucked - how do you know? Microsoft may well continue to offer Skype to other platforms too.
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Bill
Hasam1991 10th May 2011
Bill Gates is going hmm... is this guy going to destroy my company?! lol he seriously needs to come back and take on jobs, zuluckber, and google
@Hasam1991 So they pay all this money but yet I wonder what benefits they will get. It takes a long time to integrate another company into the fold and MS is so bureaucratic and management heavy that I doubt they will extract anything useful.

It's just a ruse from Senior Management to make it look like they are "doing something". They really are cluelesss..they should be focusing on improving WP7!
@Hasam1991
Purchasing Skype is going to enhance the company. They have a number of products that can take advantage of Skype.
@Hasam1991 hmmm, so the fact that the deal was approved by Microsofts board and Bill Gates being Chairman of that board should have clued you in to the fact that he probably not only knew about the deal, he approved it.

Bill needs to continue giving back to the world, not spend his time fighting some kind of comic book like battle that users like you want.
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Ballmer
MC_z Updated - 10th May 2011
Did Ballmer dance?
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LOL@Ballmer
xp-client 10th May 2011
Really Microsoft could have spent $8.5 BILLION in a much better way.
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How?
bitcrazed 10th May 2011
@anonymuos ... Like?
@bitcrazed dividend
Very dissapointing news. Must start looking for alternatives. Oovoo perhaps? Google?
I fully agree with otaddy's view on intergrating different cultures when MS is the owner. Good luck Tony! Good luck ex-Skype employees.
@sandrahandley
typical ABM even if the product is still free and still works
This is bad news for existing SKYPE users. Over the years we're enjoyed the innovations forthcoming from the SKYPE developers and community, as the company has been nimble and responsive to user needs. These qualities are not the hallmark of MS culture. Long known for releasing products with a "good enough" approach MS and their leadership do not possess that intangible drive to be the best, something that Apple and Google embody. Expect an erosion in SKYPE products as MS monetizes the service to justify the obscene $8.5 billion purchase.
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The best?
bobkemp2123@... 11th May 2011
@DenRay
What exactly has Apple done with LaLa? How many companies has Google bought and gutted? MS can't compete with the greatness that is Ping, MobileMe and GoogleTV?
@DenRay
can i have your crystal ball?
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Why would you care who owns it?
krishnansriram 11th May 2011
@DenRay I use a product that I like and that's good. I don't care if it comes from MS, Google or Apple. And I don't understand what makes you think that Skype will now rot. Just because you don't like MS does not mean the product will loose it's face value? Well if you are so prejudiced than good luck, there are so many things that you will miss in IT and technology.
I'm not understanding all the hate. Everyone loved Skype, Microsoft buys them and now everyone hates Skype. I don't see the logic in that. Microsoft could really use this product and that is why they bought it. Skype is still going to be Skype.
@LoverockDavidson
I see no Skype here in the reactions, but sadness for what M$ is likely to do with Skype. M$ doesn't have a very good record on continuing multi platform support. The best future Skype features will surely be limited to Windows.
@NotM$Sucked

Based on what. I see things like Microsoft Office, Bing, Live Messenger, One Note, & Exchange Support to name a few that work fine cross platform from everything to Operating Systems, Browsers, to Mobile devices just fine.

This is an area that Microsoft has greatly improved in the last few years and show signs of continued improvement. 10+ years ago may have been a different story.
@LoverockDavidson

No one is hating Skype. We all still love it. We're just very concerned that now MS has it, it will stop innovating in the same brilliant way. And in all probability, all the new features they do come up with will be paid for extras. And I expect to start seeing some nibbling away at the boundaries of the free service, along with a slow but steady increase in the paid-for features.
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here's why
willyampz Updated - 11th May 2011
@LoverockDavidson
Yeah, Im sure there will be great motivation to provide first class free skype on say, Android. Every piece of cross platform software that MS gets involved with is naturally going to be optimized for their OS and left to falter (and then discontinued) on the others. That's why we don't like it.
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Apple Apple Apple FTW
bitcrazed 10th May 2011
@minardi ... riiiiiight ... because before FaceTime, there was no such thing as video conferencing, face-to-face video chats etc., right?
Not being a user of Skype, it makes no direct ipact on me. Maybe Ms will improve it.
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What a waste of money.
Smart_Neuron Updated - 10th May 2011
No wonder why Microsoft stock is in the toilet.

They should have put the $$$ into more R&D.
They are no longer an innovator.
and reinventing the wheel makes no sense when you can just buy the wheel.
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But its still an asset to have. The actual market value of Skype is about US 1 million, but something happened making this company get resold so many times for so much. I hope Microsoft makes billions off it.
which Microsoft already has in it's repertoire. As a stand alone product, it's not so valuable, but, as a complement to all of the other products and services, it adds huge value to Microsoft's bottom line.
More drudgery from a lack-luster, non-ethical and non-moral company (i.e. Micro$loth). I wouldn't have sold to them for 8 trillion dollars.

It is amazing the drivel Steve B. can foist upon the world. Exciting times, eh?? How about concentrating on the bug-riddled and security-hole-riddled OS's. Invest that 8 billion on correcting THAT quagmire!

I'll believe Micro$loth has begun to edge towards 'exciting times' when I see the preponderance of stuff from Micro$loth Update being credible and tangible improvements, vice near-endless security patches.
@Joe_Wulf@...
wow! get some tissue man!
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A sad day indeed
Non-techie Talk 10th May 2011
@LoverockDavidson You're not seeing it because you don't want to see it. The logic is that Microsoft has a very well-earned reputation for stagnating rather than innovating. Remember when Hotmail was cool, fresh and new? Why did it take yahoo and then gmail for new functionality, features, shucks even storage space, to expand with Hotmail? Because Microsoft's hand was forced by the innovating landscape, not by their own sense of pride in leadership.

Same thing with IE. Why is tabbed browsing a "great new feature" in IE when Opera has true, multi-threading tabbed browsing in 1995?

I am among many who expect it all to go downhill for Skype now that it's been acquired by M$ - the biggest joke of it all is, Microsoft is welcome to prove us all wrong and ensure Skype continues to provide the service we enjoyed when Skype was on its own; if you are taking bets on this, let me know if you balance your books.

http://nontechietalk.blogspot.com
@Non-techie Talk

Remember when Microsoft introduced a new, faster, and easier way to access the tools you need within a program better than hunting through menus and sub menus? The called this a ribbon and it is being adopted by software developers of 3rd parties because the information shows that it does in fact make things easier for MOST people.

If you do remember all the outlash that people had and wanted a classic mode?

Damned if you do and damned if you don't
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RE: Microsoft CEO Ballmer's email about Skype acquisition: 'Exciting times!'
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RE: Microsoft CEO Ballmer's email about Skype acquisition: 'Exciting times!'
tomlin21-24319035676893835085146735905770 11th Oct
I can see you happen to be placing a a range of attempts mulberry bags into your running a blog web site. Hold submitting the great do the task.Some severely advantageous information in there.

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