Microsoft to buy Internet phone company Skype

FILE - In this Jan. 11, 2011 file photo, the Skype logo is reflected in the eye of a reader using a handheld smartphone, in Berlin, Germany. Microsoft Corp. is nearing a deal to buy the popular Internet telephone service Skype in what could be the biggest deal in the software maker's 36-year history, according to a published report Tuesday, May 10, 2011. (AP Photo/Patrick Sinkel, file)

May 10, 2011 5:25:09 AM PDT
Microsoft says it will buy the Internet phone company Skype for $8.5 billion in cash.