Microsoft is buying Skype

Microsoft has confirmed it will buy the internet phone service Skype. The $8.5 billion deal will connect Microsoft with the 663 million people around the world who use Skype. It is the most money Microsoft has spent to buy another company.

One is the giant business, whose software powers more than 90% of the world's computers. The other is the firm, which hasrevolutionised the way many communicate. Now Skype is beingswallowed up by Microsoft.

It's just eight years since Skype started helping people to make callsover the internet for nothing, and this is the third time it's been bought and sold.

Microsoft has been struggling to prove it can compete with the likes of Google and Apple. Now as it tries to make an impact on the mobile-phone world, it wants Skype to help it become a bigger force.

Skype is now used by 170 million people around the world (each month), not just on their computers, but on the move - on their mobile phones and even on their tablet devices.

Microsoft wants to tap in to this connected community, but it's paying a huge price for a business that isn't even profitable.

Rory Cellan-Jones, BBC News

Vocabulary

powers

here, runs, or allows the computer to operate effectively

revolutionised

introduced very big changes or new ideas to

swallowed up

here, bought and taken over by a larger company

over the internet

using a computer connected to the internet

the likes of

here, companies such as

to make an impact on

to be successful and have a strong effect on

a bigger force

here, a larger organisation with more influence

on the move

while travelling

to tap in to

to become involved in or to make use of

connected community

group of people who are linked or in contact with each other