Microsoft Bids $8.5 Billion To Buy Skype [Report]

Microsot Near to Buy Skype

NEW YORK (Reuters) – Microsoft Corp is close to buying web video conferencing service Skype Technologies for $8.5 billion including debt, a source familiar with the situation said, in a deal which would rank as the biggest for the software company.

A deal is expected to be announced as early as Tuesday morning, the source said. The source declined to be named because the talks are not public.

Both Microsoft and Skype declined comment.

Skype, which had delayed plans for an initial public offering, had recently been looking at other options.

Four days ago, we heard that Facebook was reportedly offering between $3 and $4 billion to acquire Skype or (perhaps more plausible for a startup with $2 billion in annual revenue) that Facebook might simply construct some sort of joint venture with Skype.