Microsoft announced its biggest acquisition to date. The company has inked a deal to buy Internet phone service Skype for $8.5 billion, in a bid to improve its desktop software as well as to open up new opportunities in the mobile market.
Microsoft Corp (MSFT.O) plans to buy Internet phone service Skype for $8.5 billion, a rich price as it seeks to regain ground on growing rivals such as Google Inc (GOOG.O).
Microsoft's interest in the money-losing but popular service highlights a need to gain new customers for its Windows and Office software. Skype has 145 million users on average each month and has gained favor among small business users.