Reports are indicating that Microsoft is close to finalizing a deal to purchase the popular internet phone company, Skype, for nearly $8.5 billion dollars. This deal with Skype ranks as the biggest acquisition in the history of Microsoft.
As ZDNet reports, a deal between Skype and Microsoft is nearly complete and Microsoft will be purchasing Skype for nearly $8.5 billion dollars. Representatives for both Microsoft and Skype declined to comment regarding the story but we expect a full official announcement to take place soon. This deal with Skype ranks as the biggest acquisition in the history of Microsoft.
Skype, which uses a technology called voice over internet protocol, connects millions of users around the world.
This buy will give Microsoft a recognized brand name on the Internet when the company is struggling to get more traction in that particular market. Microsoft Lync, which offers consumers a single application that ties together email, instant messaging, and voice communications, could be enhanced with Skype-integration.
Microsoft's stake in the mobile market is also a work in progress with its Windows Phone powered handsets. Skype could possibly play a huge role in Microsoft's effort to turn around its fortunes in the mobile-phone market and compete with rivals Google and Apple. Skype will allow users to make cheap phone calls over the Internet via their mobile phones and could become an issue with carriers.
We will have to wait and see how Microsoft plans on using its acquisition. Stay tuned as we keep you updated on this deal.
Update: Microsoft and Skype officially announced the agreement on May 10.