Microsoft to buy Skype for $8.5 billion

Will support Kinect and Xbox 360.

Microsoft has announced the agreed acquisition of internet telephone company Skype for an eye-popping $8.5 billion.

"Skype will support Microsoft devices like Xbox and Kinect," noted the Xbox maker, "Windows Phone and a wide array of Windows devices, and Microsoft will connect Skype users with Lync, Outlook, Xbox Live and other communities."

Xbox Live already allows Kinect owners with Gold subscriptions to video-chat with friends. Skype's technology will presumably build on this - but to what degree?

A Microsoft press conference at 4pm BST will iron out the remaining details of the deal.

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