from The Wall Street Journal
Microsoft Corp. announced a deal to buy Internet phone company Skype Technologies SA for $8.5 billion in cash—the most aggressive move yet by Microsoft to play in the increasingly converged worlds of communication, information and entertainment.
Skype will become a new business division within Microsoft, and Skype CEO Tony Bates will assume the title of president of the Microsoft Skype Division, reporting directly to Microsoft CEO Steve Ballmer.
Buying Skype gives Microsoft a recognized brand name on the Internet at a time when it is struggling to get more traction in the consumer market. The deal ranks as the biggest acquisition in the 36-year history of Microsoft.
Microsoft to Acquire Skype - WSJ.com