Software giant Microsoft buys Skype for €5.9bn

MICROSOFT has agreed to buy internet telephone service Skype for $8.5 billion (€5.9bn) in the biggest deal in the software maker’s 36-year history.

Buying Skype would give Microsoft a potentially valuable communications tool as it tries to become a bigger force on the internet and in the increasingly important smartphone market.

Following the cash purchase, Microsoft said it will marry Skype’s functions to its Xbox game console, Outlook email program and Windows smartphones.