Microsoft Chief Executive Officer (CEO) Steve Ballmer (L) and Skype CEO Tony Bates shake hands at their joint news conference in San Francisco, May 10, 2011.
Microsoft Chief Executive Officer (CEO) Steve Ballmer (L) and Skype CEO Tony Bates shake hands at their joint news conference in San Francisco. Microsoft is acquiring Skype, and the company has a new app for the iPad launching. Monday it went live, but was quickly pulled from the Apple store after the company said it was launched prematurely. Reuters

The Federal Trade Commission on Friday gave a green light to Microsoft's decision to buy Skype for $8.5 billion.

The notice announced and posted by the FTC included no further details regarding the deal. It is the Microsoft's largest acquisition to date.

Microsoft is also planning to integrate Skype into its other products such as its Xbox 360 video gaming console.

Prior to Microsoft's announcement of the purchase, Google, Cisco Systems and Facebook had also contemplated buying Skype.

The company expects 170 million monthly users of Skype can strengthen their position in telecommunications area. In 2010, about 42 percent of its calls were made on video on Skype.

Together we will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world, said the Steve Baller, the CEO of Microsoft regarding the acquisition.

Microsoft is planning to continue to invest in and support Skype clients on non-Microsoft platforms.

Skype will become part of Microsoft's new business division. Skype CEO Tony Bates will be in charge of the division once the deal is fully done.

Facebook Microsoft Cisco Systems Software