Microsoft Corporation is near to securing a deal to purchase the Internet phone company Skype Technologies costing $7 to $8 billion.

The deal which is expected to be announced soon seems to be the most aggressive move yet by the US Software giant Microsoft to play in the increasingly-converged worlds of communication, information and entertainment.

Personalities familiar with the transaction said, though they advised that negotiations are not yet final and that it is still open for cancellation. Including Skype's long-term debt, the anticipated total value of the deal is about $8.5 billion.

Representatives for Microsoft and Skype declined to comment.

Buying Skype would give Microsoft a renowned brand name on the Internet at a time when it is struggling to get more grip in the consumer market.

Although Microsoft has invested greatly in marketing and improving the technology of its Bing search engine, Google Inc. remains the upper hand in the search market with more than 65% of U.S. searches going through its website.

Microsoft Chief Executive Steve Ballmer, perceives the Internet as an essential battleground for Microsoft as the company still makes the vast bulk of its profits from Windows and Office software systems.

Microsoft investors have become progressively more concerned about Microsoft's ability to squeeze continued growth out of those businesses, as rival technologies from Apple Inc., Google and others put more pressure on revenues.

Skype could play a vital role in Microsoft's effort to turn around its fortunes in the mobile-phone market, an area where it has delayed badly behind rivals Apple and Google. The company last year launched a new operating system for mobile phones known as Windows Phone 7 that has been well reviewed by technology critics but did not provide any significant improvement in Microsoft's market share.

Microsoft would need to think carefully about integrating Skype into its mobile software because of the potential for push back from wireless carriers, whose support Microsoft badly needs. Skype could give clients a way to make cheap phone calls over the Internet from mobile phones, without paying higher rates to the carriers.