And if you look at the Microsoft strategy, there's a lot of similarities. If you think about Skype's value proposition, it's been around making it easy and seamless to communicate, both with audio and then video from the desktop to, more recently, mobile. Why did Skype agree to the deal instead?ĪNSWER: The thing that made it exciting for Skype was a shared view of the way we see communications evolving. QUESTION: Prior to getting this unsolicited bid from Microsoft, Skype was planning on going public. The interview was edited for length and clarity.

In an interview, Bates talked about why the Microsoft deal makes sense, why things will work better with this acquisition and how the company plans to diversify its revenue. Meanwhile, few Skype users actually pay to use its services - and many may resist doing so. eBay, which previously owned Skype, famously failed in its efforts to integrate the company into its auction business.

Bates will be charged with growing Skype's business and will help oversee efforts to connect Skype with Microsoft's other products. for a whopping $8.6 billion in cash.Īs part of the merger, which still has to be approved by regulators, Bates, a former Cisco Systems executive, will become president of Microsoft's new Skype division and report directly to CEO Steve Ballmer. To cap it off, the Internet calling company announced earlier this month that instead of going public, it had agreed to be acquired by Microsoft Corp. The company has consolidated its local offices to Palo Alto, Calif., announced plans to hire hundreds of new workers, added a video calling feature to its iPhone and Android applications and acquired a competitor, all while preparing for a planned public offering.

New skype ceo