Microsoft completes Skype acquisition

Microsoft has finally completed its $US8.5 billion acquisition of Skype, the company announced.

The acquisition, which has been in the works for several months, will make Skype a division within Microsoft.

“Skype is a phenomenal product and brand that is loved by hundreds of millions of people around the world,” chief executive Steve Ballmer said in a statement.

“We look forward to working with the Skype team to create new ways for people to stay connected to family, friends, clients an colleagues – anytime, anywhere.”

Skype chief executive Tony Bates will become president of the Skype division.