Microsoft Corp is nearing a deal to buy Internet phone firm Skype Technologies for between $7 billion and $8 billion -- the most aggressive move yet by the software giant to play in the increasingly converged worlds of communication, information and entertainment.
"Microsoft Corp is close to a deal to buy Internet phone company Skype Technologies SA for between $7 billion and $8 billion," The Wall Street Journal reported.
The report further said that including Skype's long-term debt, the total value of the deal amounted to $8.5 billion.
A deal could be announced as early as Tuesday, the report said, citing people familiar with the matter.
Skype was launched in 2003 by Niklas Zennstrom and Janus Friis, who has also created a file-sharing technology called Kazaa that became widely associated with music piracy.
While Skype was initially popular with techies, it increasingly worked its way into the mainstream by offering free or cheap phone calls, which were especially appealing to international callers.
Online market place ebay Inc acquired Skype in 2005 for $2.6