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First two Microsoft execs exit following new CEO appointment
Microsoft has a new CEO in Satya Nadella, but two of his direct reports are apparently on their way out according to Re/code. Both marketing EVP Tami Reller and biz dev/evangelism EVP Tony Bates are leaving Microsoft; the company hasn't officially confirmed either departure, but is expected to announce as much tomorrow. Bates is certainly the bigger name of the two, having previously led Skype to its acquisition by Microsoft back in 2011. In a video from that era (found below), Bates said he was looking forward to what Microsoft and Skype could do together. He said he saw video communication becoming ubiquitous in the next several years, and was looking forward to combining Skype's and Microsoft's "disruptive" approaches to consumer tech. He was reported to be in the running for Nadella's CEO job as well, which certainly helps to explain why he'd be interested in leaving Microsoft right now. As far as Reller goes, it's not entirely clear why she's on the way out. Re/code posits that her situation internally before Nadella took the new CEO spot was contentious, sharing management duties with Ballmer (for instance) over certain employees. How does any of this impact you? It doesn't just yet, but the former head of Skype leaving Microsoft certainly doesn't bode well for that department. Either way, expect to see more departures as the ongoing exec shuffle at Microsoft continues. Update: Microsoft's confirmed the news in releasing Nadella's letter to his senior leadership team.
Skype CEO Tony Bates confirms 250m monthly users, talks Microsoft partnership and future plans
Skype CEO Tony Bates just took the stage here on the final day of D10, and he got right into the news delivery mindset: as of now, there are 250 million monthly connected users. Said Bates, "When we closed [the Microsoft deal], we had 170 million monthly users, so haven't skipped a beat in terms of momentum." Continuing on when asked from Kara Swisher about integration with Microsoft, Bates said: "I'm not going to talk about future products, but I'll steal a line from Tim Cook. We're going to double-down on integration with Windows 8, and we're doing to double-down on secrecy." Specifically, he mentioned that there'd be some "great integration points" with Windows 8, noting that Skype is viewed as an "experience, with most folks viewing it as a Swiss army knife, regardless of where and how it's used." Kara followed up with a question on Kinect, and Bates did his best to dodge the bullet by re-referencing intent on Windows 8 and Windows Phone -- there wasn't a peep mentioned in either direction on if it'd end up there. Kara asked what his most important smartphone platform was, and Bates said: "I wouldn't classify it as one most important. As far as download numbers, it's absolutely iPhone, but Android is gaining momentum. Our top priority is mobile; we made two acquisitions in that space. The Android marketplace -- as many know -- is quite fragmented, and this was a big challenge for us from an engineering standpoint. This team in the Qik acquisition really helped us there. I'm very hopeful -- Windows Phone is very exciting for me because of that people-centric nature." Kara pushed to see if Windows Phone would get a "special" version of Skype, and Bates simply said that he "hopes they can add value." Given that both Windows Phone and Skype now live under the same roof, though, we're guessing that he's underselling things in the effort of "doubling-down on secrecy."
Microsoft finalizes acquisition of Skype, Tony Bates shares his thoughts (video)
Well, it's finally happened -- Microsoft's acquisition of Skype has just been finalized, a little more than five months after it was first announced. Under the $8.5 billion deal, Skype CEO Tony Bates will be named president of the new Skype Division of Microsoft, and will have to report directly to Steve Ballmer. Many Skype employees, meanwhile, will stay onboard at offices around the globe, including at outposts in Estonia, the Czech Republic, Russia, Sweden, the UK, Luxembourg, Japan, Singapore, Hong Kong and the US. In a post on the Official Microsoft Blog today, Bates seemed unsurprisingly enthusiastic about the acquisition, describing it as a marriage of two "disruptive, innovative, software-oriented companies." The exec was less specific about the role his company would play within Redmond's new architecture, but assured that Skype would be at the forefront of future communications initiatives across a variety of platforms. "Microsoft is committed to the ubiquity of the Skype experience – communication across every device and every platform will remain a primary focus," Bates wrote. "And we've only scratched the surface." Head past the break for Microsoft's full PR, as well as the video address from Bates.
Microsoft's acquisition of Skype for $8.5 billion becomes official
It was pretty much known about since last night, but Microsoft and Skype have now obliterated any lingering doubt in the matter: the Redmond-based software giant will acquire the internet telephony company for a cool $8.5 billion in cash. Xbox and Kinect support are explicitly mentioned in the announcement of this definitive agreement, as is Windows Phone integration -- both the gaming and mobile aspects being presumably key incentives for Microsoft to acquire Skype. Importantly, this purchase shouldn't affect Skypers outside of the Microsoft ecosystem, as Steve Ballmer's team promises to continue "to invest in and support Skype clients on non-Microsoft platforms." Skype was first sold for a relative bargain at $2.5b to eBay in 2005, who in turn sold most of it off to Silver Lake in 2009 at an overall valuation of $2.75b, and now Redmond is concluding proceedings by tripling those earlier prices and offering Skype a permanent home. A new Microsoft Skype Division will now be opened up to accommodate the newcomers, with current Skype CEO Tony Bates becoming president of that operation and reporting directly to Ballmer. The deal is expected to close by the end of this year and you can read Microskype's full announcement after the break. Update: Microsoft has just disclosed a couple more details about the deal. It was signed last night, May 9th, though the price was finalized on April 18th. You can follow a live stream of Steve Ballmer and Tony Bates' presentation right here.
Skype happy to offer jobs to any Finns who might be in need
Over 1,000 disgruntled Nokistas walked off the job last week and, while presumably all of them showed up punctually on Monday morning, it remains to be seen how many will get proverbial pink slips as Elop starts making cuts. When that time comes Skype is happy to say that they'd like to hire as many as possible. CEO Tony Bates has no qualms about making the best of this situation, saying the following to Reuters: There is going to be tremendous talent out there... "Our primary engineering focus just so happens to be somewhere between Finland, Estonia and Stockholm, so you can imagine that's a great opportunity and we're hiring. Hear that, shunned Nokia elite? Now turn that frown upside down.
Skype well on the road to recovery, group video calls restored
We almost got to see what Christmas was like before Skype, and it wasn't pleasant. Of course, VOIP and videoconferencing will never replace Grandma Pat's pizzelles, but the technology sure does make pre-holiday planning a lot easier. For its part, Skype hasn't gone into too much detail regarding the nature of its most recent outage (something about "mega-supernodes"), although as of this writing group video calling appears to be back and CEO Tony Bates has announced that customers will be compensated for the interruption of service with free and pay-as-you-go customers receiving credit for a free 30-minute SkypeOut call to landlines, while paid subscribers will get a free week of service. Keep an eye out on the Skype Blog for further updates, and we'll keep our fingers crossed that this year we won't have to learn what New Year's Eve is like without Chatroulette. As for Skype itself, with the way they've been courting enterprise customers they'll just be happy if this doesn't do too much damage to their impending IPO.
Skype lands Cisco's Tony Bates as new CEO
It may sound fairly bland on paper, but the potential implications here are notable. Tony Bates, who was seen as a major player within Cisco reporting directly to CEO John Chambers, has just left to take over the CEO role at Skype. Cisco's own blog affirmed that Bates was leaving "to pursue another opportunity," and The New York Times has it that Joshua Silverman is stepping aside to make room for Mr. Bates. He'll arrive just in time to make a serious push for an IPO, grab more profit from its blossoming user base (which largely doesn't pay anything to make Skype-to-Skype calls) and possibly "make a deeper push into carrier and enterprise markets," as GigaOM puts it. Frankly, we'd be interested in seeing if any leftover synergies (yeah, we said it) could lead to a Skype-enabled Flip Video camcorder. Bates would obviously have great contacts with Cisco in order to make it happen, and honestly, it'd be a win-win for both parties. Crazier things have happened, right?
