It looks like Microsoft has bought Skype - the internet voice and video calls service - for an estimated $8.5 billion US dollars Published on May 10, 2011
It looks like Microsoft has bought Skype for $8.5 billion US dollars as the firm has just invited us to a press meeting regarding the acquisition, ending weeks of speculation.
This will become the firm's most expensive acquisition so far, beating the $6 billion US dollars (£3.2 billion) it paid for online advertising agency, aQuantive.
Skype, which lets 663 million users make voice, video calls and text-based chats worldwide, could play a key role in expanding Microsoft's current portfolio. The ability to integrate a service that generated 207 billion minutes of call time in 2010 has significant benefits, at the least, access to a massive audience.
It's clear this is a move to help the battle with rivals Facebook and Google, but what is not clear is what Microsoft will do with Skype. A FaceTime equivalent for Windows Phone 7 and Windows 7 are both viable prospects.
With Google and Facebook also reportedly circling, it seems Skype - although the company made a loss of £4.2 million in 2010 on revenues of £525 million - is still very much hot property.
When asked about the acquisition, Microsoft said it, "does not comment on rumour or speculation." Skype was unavailable to comment.
We'll live blogging the London press event from 4pm UK time, so keep your eyes peeled on Know Your Mobile for Microsoft's official announcement.
TagsMicrosoft | Skype | Acquisition | Buy out | Purchase | Video calls | Voice calls | Free | Bill Gates | Facebook | Google
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