Watch CBS News

Microsoft Makes Its Biggest Buy Yet: Skype

BOSTON (CBS) -- Microsoft has agreed to buy the fastest growing internet telephone service on earth in what is being called the biggest deal in Microsoft's 36 year history. Microsoft is paying $8.5 billion for Skype, which gives the company a user base of about 170 million people, a number that's growing daily.

Microsoft CEO Steve Ballmer calls the deal "a huge growth opportunity" for innovation and what he called "new scenarios." Microsoft says it wants to marry Skype's functions to its Outlook email, Windows-based smartphones and even its X-box game console.

Professor Eric Johnson at the Tuck School of Business at Dartmouth says this deal "hangs on its ability to create synergy with some of the other Microsoft products." Even though Skype is growing, the company lost $7 million last year, and later put a planned IPO on hold.

WBZ NewsRadio 1030's Anthony Silva reports.


View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.