Microsoft buying Skype for $8.5 billion.

Microsoft has finished a deal to acquire internet phone service Skype, reportedly at a cost of $8.5 billion, with the intention of supporting Microsoft devices like Xbox and Kinect, Windows Phone as well as Outlook and Live services.

How this will effect current users is unknown despite already being major part of the Three mobile phone network, the PSP, Sony’s intention of bringing it to the PS3, and Skype’s own suggestion of bringing it to the DS platform.

The terms of the acquisition have come as a shock to some analysts who feel that Microsoft vastly overvalues Skype, it has debt of $686 despite having 663 million registered users worldwide with most of its existing services being free.