Impulse Buy: Microsoft Buys Skype

In its largest acquisition ever and the tech world's most massive deal in years, Microsoft Corp. is buying Internet communications company Skype Global for an amazing $8.5 billion.

Previously, Microsoft's biggest buy was $6 billion for online advertising firm aQuantive in 2007.

Skype's software allows users to talk for free online using messaging, voice and video and can also connect them to a land line or mobile phone for a fee. Users will now be able to connect to Microsoft offerings such as Lync, Outlook and Xbox Live, while Skype will support devices such as Xbox and Kinect, officials said. 

Skype is owned by an investment group led by Silver Lake, which bought the real-time voice and video company from its previous owner, eBay, in 2009 for slightly more than $2 billion. It was founded in 2003 and now has 170 million connected users who chatted for 207 billion minutes last year. 

The company will become a new division of Microsoft and will be led by its current chief executive, Tony Bates. 

Time will tell if this is a good or bad idea.