Here's Where Skype Will Fit Into Microsoft

Skype will become part of Microsoft's Entertainment and Devices segment for financial reporting purposes, putting it alongside the Xbox business and Windows Phone.

It's a bit of a surprising choice, given that a lot of the business value of Skype will come as it is integrated with Lync, Microsoft's corporate messaging product. Lync is a hot seller these days -- revenue was up 25% this quarter compared with last year. But it makes sense because Skype is largely a consumer product today, and will probably be integrated into Xbox Live and perhaps Windows Phone before it gets tied into Lync. Operationally, Skype will be run as an independent division.