Microsoft acquires Skype for $8.5 billion

Sources reveal that by Tuesday, Microsoft will announce its deal to acquire Internet phone company Skype Technologies SA for between $7 billion and $8 billion. Experts believe that this would be the most aggressive step by Microsoft in the field of communication, information and entertainment. This deal is the biggest acquisition in the 36-year history of Microsoft.

Although the deal is still under vigilance and is yet not final and there is a possibility that it could still fall apart. It is likely that deal will close at $8.5 billion including Skype’s long-term debt.

When representatives of Microsoft and Skype were questioned regarding this deal they declined to comment.

Microsoft is struggling hard to grip its position in the consumer market and with this deal it will get a recognized brand name in the world of Internet as Skype is a brand in itself which connects millions of users around the world via Internet-based telephony and video.

Till now heavy expenses have been incurred by Microsoft in marketing and improving the technology of its Bing search engine and it has recorded some market share gains also over the past year.

But the top position is still acquired by Google Inc. which dominates the search market with more than 65% of U. S. searches.