Microsoft is Buying Skype for $8.5 Billion

Skype, a service provider to connect millions of users around the world via Internet-based telephony and video, is close to be acquired by Microsoft with a cash deal.

Skype uses a technology called voice over Internet protocol (VOIP), allows users to call other Skype users on computers or certain cellphones for free. Skype users can also call land lines for a fee and conduct video calls. Skype should help Window 7 Phone and Microsoft can integrate Skype to its mobile software.

Why Microsoft is Buying Skype for $8.5 Billion? Om Malik gave some reasons in

http://gigaom.com/2011/05/09/why-microsoft-is-buying-skype-for-8-billion/