Microsoft to buy Skype for $7 Billion?: Update - Apparently confirmed

According to the Wall Street Journal, Microsoft is close to striking an agreement with Skype Technoligies SA worth more than $7 Billion, and could be announcing a deal as early as Tuesday morning.

This deal would rank at the top, or near the top of the largest Microsoft aquisitions in the company’s history.  It could also be considered one of their biggest risks.

Microsoft + Skype could bring about some really interesting combinations, like Kinect Video Chat.  There is already a Skype client coming for Windows Phone 7, so it is unknown what advantage this might have in the phone market.  Certainly, some more integration into the core-services of the Windows Phone OS could be coming, but how that looks, we’ll have to wait and see.

VIA: This Is My Next

SOURCE: Wall Street Journal

Update: Kara Swisher from AllthingsD claims the deal is confirmed, and would total $8.5 billion as Microsoft is also assuming all of Skype’s debts. Skype was valued at 2.75 billion in 2009, making it a very high premium for the companies 660 million + users.

Speculation is that this is mainly  a defensive move against Google and Facebook acquiring the headlining cross-platform VOIP app, but it is not clear how Microsoft intends to integrate the Peer to Peer technology with its own Live services.