Edit; it seems that Kara from AllThingsD has confirmed that Microsoft have just purchased Skype for a staggering $8.5 billion.
Microsoft aren't content with letting Google enjoy their I/O day today with rumors coming from Wall Street Journal sources that Microsoft is in the final negotiation stages to absorb Skype for a very nice $7 billion.
The announcement of this merger could come as soon as Tuesday, this new deal is also a record figure for Microsoft - $7 billion! Are we looking at super-tight integration of VoiP into Windows Phone 7? Windows 8 with awesome VoiP features? Time will tell.
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