Microsoft acquisition of Skype closes and Canada Pension Plan pockets $528 Million

Posted by Rob Lewis on 2011-10-14 2:30:00 PM

Last May Techvibes reported that Skype had been acquired by Microsoft and that Canadians would make over $500 Million on the deal.

Today the transaction officially closed and the Canada Pension Plan Investment Board deserves a pat on the back.

You may remember that the Canada Pension Plan Investment Board invested in Skype in September 2009. At the time the Canada Pension Plan's investing arm was among a group of buyers purchasing a 65% stake in the company for about $2 Billion. The CPPIB's contribution to the deal was about $300 million or 15%.

Based on the reported $8.5 Billion cash purchase price, the CPPIB's stake in Skype is worth $828 million.

That's a $528 Million profit on a 20-month investment.

Company:
Microsoft Canada
Website:
http://www.microsoft.ca
Location:
Vancouver, British Columbia, Canada

At Microsoft, we're motivated and inspired every day by how our customers use our software to find creative solutions to business problems, develop breakthrough ideas, and stay connected to what's most important to them. We run our business in much the same way, and believe our seven core business units offer the greatest potential to serve our customers in the coming decade. more

Company:
Skype
Website:
http://www.skype.com
Location:
Luxembourg, District de Luxembourg, Luxembourg

Skype is software that enables the world’s conversations. Millions of individuals and businesses use Skype to make free video and voice calls, send instant messages and share files with other Skype users. Everyday, people everywhere also use Skype to make low-cost calls to landlines and mobiles. more

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Rob Lewis

Rob Lewis

Rob is the President of Techvibes Media Inc. and Editor-in-Chief of Techvibes.com.  His diverse background includes stints in International Trade Finance, Web Development, and Enterprise Software and he is a graduate of the University of British Columbia, British Columbia Institute of Technology, and Simon Fraser University. When not running Canada's leading technology media property, Rob can... more

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