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Microsoft agrees to buy Skype for $8.5B

A Microsoft Corp. sign is shown in an undated photo.

May 10, 2011 12:00:00 AM PDT
Microsoft Corp. said Tuesday it will buy the internet phone company Skype.

The software giant is offering to buy the web chat and video conferencing company for $8.5 billion in cash.

It's the biggest deal in the software maker's 36-year history.

The sellers include eBay and private equity firms Silver Lake and Andreessen Horowitz.

Skype boasts about 663 million users worldwide.