Microsoft finalises Skype acquisition for £5.3bn

Microsoft has finalised its acquisition of internet communications company Skype for $8.5bn (£5.3bn).

The acquisition, which was originally announced in May, was approved by both brands.

The closure of the acquisition follows a statement from the European Commission saying there are no competition concerns; it therefore cleared the deal.

However, there continue to be outstanding reviews of the acquisition in a few countries, according to Microsoft.

Skype will form a new business division within Microsoft and be led by Skype CEO Tony Bates, who will become president of the Skype division of Microsoft.

He will report to chief executive of Microsoft Steve Ballmer.

Microsoft has said the popular Skype product will continue to be offered to users globally, but will also be integrated with Microsoft's products.

According to Bates, the acquisition will benefit both enterprises and consumers.

"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.

Skype was founded in 2003 and purchased by eBay for $2.6bn (£1.6bn) in 2005. It was then acquired by an investment group in 2009, led by Silver Lake.