Microsoft will buy Skype for $8.5bn in cash, reports the Wall Street Journal.
Skype will become a new business division within Microsoft, and Skype Chief Executive Tony Bates will assume the title of president of the Microsoft Skype Division, reporting directly to Mr. Ballmer.
Buying Skype–a service that links users via Internet-based telephony and video–gives Microsoft a recognized brand name on the Internet at a time when it is struggling to get more traction in the consumer market.
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