Microsoft confirms takeover of Skype
Microsoft has confirmed that it has agreed to buy internet phone service Skype.
The deal will see Microsoft pay $8.5bn (£5.2bn) for Skype, making it Microsoft's largest acquisition.
Microsoft chief executive Steve Ballmer said: "Skype is a phenomenal service that is loved by millions of people around the world. Together we will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world."