Skype Will Be Its Own Division At Microsoft

ballmer talking

Microsoft will keep Skype as a separate division within the company rather than folding it into one of the company’s other businesses, Microsoft announced this morning.

Skype CEO Tony Bates — who joined the company only last October from Cisco — will head up the Skype Division and report directly to Steve Ballmer.

Microsoft has not yet decided whether it will break out Skype’s financials separately. If not, it will mostly likely be rolled up into the Business division, where Microsoft’s corporate IM and messaging product Lync lives.

The move shows that Microsoft bought Skype to help out with multiple businesses, rather than focusing only on one — in other words, it’s both a consumer and enterprise play.

Boosting Windows Phone by giving it a built in and well-known competitor to Apple’s FaceTime is one logical use.

Microsoft and Skype are holding a press conference to discuss the deal at 11 am ET. We’ll bring you updates as they happen.