Confirmed: Microsoft buys skype for $8.5b - Updated

Yesterday we reported that Microsoft was rumoured to be very close to buying Skype, the internet telephony company that Facebook and Google have also been circling. Today, that rumour is confirmed with news that "very close" means "done deal", because apparently the whole thing is done and dusted.

Some are questioning the financial sense of the deal, especially for such a large amount when Skype's 2010 revenue was $860 million, but Skype fits in well with Microsoft's current offerings and future plans.

As TechCrunch reported:

"Whether you think the Microsoft deal makes sense or not, rest assured that companies like Google, Cisco and Apple, on the other hand, are not going to be too pleased about it. Not that either of them absolutely needed to own Skype, but in the hands of Microsoft it's a much bigger threat to them than if it were still under eBay's wings, or as a separate company."

Update: It sounds like Microsoft plans to integrate Skype calling into existing devices like Xbox, Kinect, Windows Phone and others - it will continue to support Skype on non-MS platforms.