Microsoft aims to bring Skype to 1bn daily users

Microsoft has pledged to bring Skype to 1bn people worldwide after the software giant completed its $8.5 billion (£5bn) takeover deal for the internet telephony firm.

The acquisition of Skype gives Microsoft a major foothold in the emerging market for web telephony. It plans to more closely integrate the real-time communications service into Windows Phone, Xbox Live, Office and other products.

Microsoft and Skype will work together to bring the service to more consumer and enterprise customers via the new Microsoft Skype Division, led by former Skype chief executive Tony Bates.

Skype has 170 million connected users and handled more than 207 billion minutes of voice and video conversations last year. However, Microsoft hopes to reach 1bn users daily with the service.

"By bringing together the best of Microsoft and the best of Skype, we are committed to empowering consumers and businesses around the globe to connect in new ways," Bates said. "Together, we will be able to accelerate Skype's goal to reach 1 billion users daily."

Microsoft chief executive Steve Ballmer added: "Skype is a phenomenal product and brand that is loved by hundreds of millions of people around the world.

"We look forward to working with the Skype team to create new ways for people to stay connected to family, friends, clients and colleagues - anytime, anywhere."

Skype, which uses voice over Internet Protocol (VoIP) technology, has struggled to make a profit in the eight years since it was founded in 2003. Last year, the company posted revenue of $860 million, delivering $264m in operating profits, but still endured a loss of $7m.

Microsoft said that the acquisition remains "under review" in a few countries, and will be completed in those areas after the regulatory hurdles are deal with.