This morning’s news will be dominated by the Wall Street Journal’s breaking story about Microsoft‘s talks with Skype…
Microsoft Corp. is close to a deal to buy Internet phone company Skype Technologies SA for between $7 billion and $8 billion—the most aggressive move yet by Microsoft to play in the increasingly-converged worlds of communication, information and entertainment.
A deal could be announced as early as Tuesday, people familiar with the matter said, though they cautioned that negotiations aren’t yet final and a deal could still fall apart. Including Skype’s long-term debt, the total value of the deal is about $8.5 billion.
This would be the largest deal in Microsoft’s 36 year history according to the story. At first blush, I kinda like it. Microsoft’s been blowing money on the web with nothing to show for it after a decade. This deal gives them an answer to GChat, Google Voice, Apple’s Facetime, etc. It’s big money, but what the hell else is Microsoft going to do with all that cash and equity – buy Yahoo? LOL.