Microsoft finalises Skype deal - Video chat service company will run as a division of Microsoft

Microsoft has finalised its purchase of internet video chat service Skype for $8.5 billion.

The deal was first announced five months ago and was completed on Thursday.

According to the Press Association, Microsoft has hopes that Skype will help it catch up in the social networking, mobile phone and digital video market segments.

Skype has approximately 170m users worldwide, who created around 207 billion minutes of voice and video calls last year, adding up to almost 400,000 years' worth.

Skype will operate as a division within the Microsoft and Skype CEO Tony Bates is joining Microsoft to run the division and will report to Microsoft CEO Steve Ballmer.

Skype 4.0 Beta Overhauls Video Chat [Featured Windows Download]

Skype 4.0 Beta Overhauls Video Chat [Featured Windows Download]

via Lifehacker by Kevin Purdy on 6/18/08

Windows only: Skype has released an early beta of their 4.0 release for Windows users, and the best word for it is bigger. The client itself is now a full-screen affair, putting your contact list at left and offering all the user options in a big central box. Video calls are both literally bigger, with full-screen streams and picture-in-picture chat, and a larger part of the client's focus. Hardware setup has also been streamlined to detect compatible hardware, or recommend it if troubleshooting fails. It's still an early beta—my XP box just couldn't run it without crashing—but worth checking out if you regularly use Skype video chat. Skype 4.0 beta is a free download for Windows systems only (for now).

Skype 4.0 Beta [via eWeek