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Microsoft to buy Skype

Tim Green
Microsoft to buy Skype

Will pay between $7 billion and $8 billion for the VoIP pioneer.

The WSJ says the deal is imminent, and will be worth around $8.5bn once Skype's long-term debt is factored in.

It would make Microsoft the fourth owner of Skype in eight years, during which time eBay tried and failed to intergrate the firm into its e-commerce operation.

Skype has a big brand name and has succeeded in becoming synonymous with internet protocol voice calls.

But it's struggled to turn this into profit; the firm posted revenue of $860 million and a $7 million loss in 2010.

Microsoft certainly needs to bolster its online credentials. It's been left behind to a degree by Apple, Google and Facebook, although the newest version of IE and Bing have won plaudits.

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The WSJ says that the Microsoft's Lync product, which ties together email, instant messaging and voice communications into a single application, could be the focus of the integration with Skype.

It could also be embedded in future versions of WinPho – depending on how operators react.

At a value close to $8 billion, the Skype deal would rank as the biggest acquisition in the 36-year history of Microsoft.

Tags: skype , voip , microsoft , ebay , M&A

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