Microsoft Buy Skype

Breaking news this morning in the tech sector.  Microsoft has agreed to purchase VOIP provider Skype for 8.5 billion, including some debit.  A formal announcement if forth coming in the next few hours.  The Wall Street journal reported in a online story Monday night that the deal was possibly going to occur.

Last week it looked like Skype and Facebook would possibly be partnering.

Under the deal, it places Skype CEO Tony Bates at the helm, in a new business unit within Microsoft.  He will be reporting directly to Microsoft Boss Steve Balmer.

Skype is a Luxembourg based Voice over Internet Provider that was started in 2003 by Niklas Zennstrom and Janus Friis, both of Kazza fame.

More updates on this story will come later in the morning so check back frequently on this one.

Update: 05/10/2011
Full details on the Aquisition of Skype in a Press Release from Microsoft added.  Blamer indicated that Skype technology will be integrated in Xbox, Outlook as well as phones.

Source: CNN Money, SeattleTimes, Microsoft