after all, skype is not profitable. its web users skype other users for free. skype only makes money off of group video conferences and old fashioned phone calls. but analyst ted shadler sees wisdom in the marriage. >> microsoft needs this kind of product to be successful in the future. it has to compete against google, it has to compete against other business competitors, and skype is a great product for that. >> reporter: most experts say the big problem with the purchase is the hefty price tag, even for a cash cow like microsoft. standard and poor's analyst jim yin is negative on the pairing because microsoft is shelling out ten times skype's annual revenue. >> this is not a cheap deal. normally, when company's give ten times revenue, it's usually for a small technology company that you can quickly expand it's user base. here, this is not quite a startup, but still it's a more mature product. >> reporter: others say never mind the price, the real strategy is keeping skype out of the hands of google and facebook. for that reason, microsoft paid exactly the ri

microsoft could improve skype. microsoft could destroy skype but here is the press conference in downtown san francisco. ceo of microsoft promised that the product will grow and be enhanced and create new user opportunity. skype was attracted to microsoft for all the users, 170 million people every month use skype. this will help microsoft to get a stronghold on the internet. >> in time people around the planet talk about communication, they talk about skype. the skype brand has become a verb, synonymous with video and voice communication. clearly skype is built an innovative product with global scale. the number of users is rapidly accelerating which really was exciting to me. >>> he also got excited because of 600,000 new registrations on skype every day. that is a lot of people from microsoft. microsoft has been accustomed to losing money on the internet. microsoft is making a strong statement with this big $8.5 billion purchase. as much as the executives said the importance of skype, they then said they are dri

skype notleedg edge ne technolo. this is an entrenched techlogy, old thnoly, buas i said bore,t is stic technology. they can levera this, 170 milln users and bring them into the microsoft fold, ey canefend themselves i a beer w against all tse other competitor >> tha you very much, andrew. >> tnk yu. >>and in on more note fom th technology worldoogle annoced day it is launching an onine mic service similar theperation offed by amazon t aowssers to store and accessup to 20,000 songs whererhey are, but it is stl unclear whether the rerding industry wl go along with the plan. yore watching bbworl news amera. still to come, the beautul game cesnder some ugly allegations after aop elish official chgescorruption at the hghest ranks. gold cent itsortunes have en shiningbrig around the globe, and no mo so an i dia. one-third of the wor's gold jelry is ought there. is time of year the commodity is in hot demand. >> isis mumbai's gld rush. shoprs re atthe baar, one theargest welryarke buying t meta for the hind feival. lend sa

microsoft could improve skype. microsoft could destroy skype but here is the press conference in downtown san francisco. ceo of microsoft promised that the product will grow and be enhanced and create new user opportunity. skype was attracted to microsoft for all the users, 170 million people every month use skype. this will help microsoft to get a stronghold on the internet. >> in time people around the planet talk about communication, they talk about skype. the skype brand has become a verb, synonymous with video and voice communication. clearly skype is built an innovative product with global scale. the number of users is rapidly accelerating which really was exciting to me. >>> he also got excited because of 600,000 new registrations on skype every day. that is a lot of people from microsoft. microsoft has been accustomed to losing money on the internet. microsoft is making a strong statement with this big $8.5 billion purchase. as much as the executives said the importance of skype, they then said they are dri

people say i'm to skype somebody. it's become that recognizable to consumers around the world. >> brown: how does microsoft incorporate skype into what it does and especially what it wants to do to compete with these other companies? >> what microsoft hopes to do is weave skype through its very diverse product lines from the office suite of business applications to its x- box console to its smart phones so imagine you're playing halo on the x-box. hopefully you'll choose to also press a button that says skype and do a videoconference call with, say, a cousin in rome and who will play with you alongside. you can watch that person realtime on the videoconferencing. so that's some of the things that you can imagine this acquisition can bring about. >> brown: so a better experience which attracts more users. >> yes. >> brown: which somehow brings in money because we still don't see quite how if skype doesn't make a profit or much of a profit, how does microsoft see getting to that? >> aside from exactly attracting people

the skype brand is going to stay strong.re going to have the great assets and opportunity of both companies to just really supercharge it and take it to the next level. >> skype is now used by 170 million people around the world, not just on their computers but on the move on their mobile phones and even on their tablet devices. microsoft wants to tap in to this connected community, but it's paying a huge price for a business which isn't even profitable. the price tag on skype looks exorbitant but microsoft was competing with others to buy the business. >> this shows even though it doesn't make money, the idea for talking for free around the world is appealing as we look to sort of change the way we talk through twitter, through facebook, through email and other forms of communication. >> microsoft will now hope to bring skype to new places like in xbox connect gaming console, while it's paying a hefty price to prove it can be a force in the way the world talks. bbc news. >> more than a week after their wedding at westminist

buying skype for $8.5 billion. skype is incredibly popular.t is the main brand when it comes to make videophone calls. it's been owned by ebay for years as well as a group of private investors here in the silicon valley. ebay sold a 70% chunk of the company two years ago to those private investors. big problem with skype is its inability to make money. so that's the question investors will have for microsoft. what are they going to do with in company to make money off of it. microsoft already saying it's going to incorporate skype into xbox, its outlook email as well as its windows phone 7 operating system. skype's got more than half billion users around the world. so microsoft is going to try to find a way to take all of those users and capitalize off of it in ways that it's not been able to do so up to this point. on the tech front, that is the reason why the state gained more jobs in the 1st quarter. the employment development department says california gained 90,000 jobs in the 1st quarter. that compared to 82,000 new jobs in all of 2010.

google had been in the running to snap up the skype. google announced its android platform is now on 100 million devices. they also announced a new service called music beta. >>> general motors is showing more signs of recovery. the automaker said it would be adding 4000 jobs in the u.s. there will be new hires or for lord workers called back to 17 plant in eight states. they will be paid about $14 an hour. the bottom line is that john -- jobs are being created. >>> al qaeda says the u.s. has committed a big mistake and a serious sin. they warned that the american people will pay the price. it is calling on muslims to avenge bin laden's death. >>> the u.s. circuit court of appeals is calling the veterans administration handling of mental health claims incompetent. a judge has noted the 18 veterans commit suicide each day. of course, i sided in favor of two groups that sued the epa. the court is forcing them to work -- the court sided in favor of two groups that sued the va. >>> the mississippi crested just below its all-time high in mem

now skype is being sallowed up. it is justightears sce skyp startedhelpg people makealls over the internet r nothing. this is the third time it has be bought d so. microft has bee struggling t compe with google and apple it wants skype to hp it become a bger force in communicaon. the parers inhis al s they he amtious plans. >> it ia rare asset. the word spe an communicationso a t of pele. iill skype you. >> t brand is goi totay stng. we will have a grea ass an opportunity for bothompaes. is a chanc to take it to the nextevel. skype is now use by 170 llio people aroun the world, not just on eir computers, but on the mile phos and tabletevic. microsoft wantso tap into this mmuny, but it is paying a huge pricfor a business that n even protabl therice tag looks enormous, but crost was cpeting with hers. >> the id of talking forree arnd t worlds appealings we lk athanging t way we talk, thughacebook,witt, mail, and oer fms of communication. >> microso also hopes to connect skype to its gamin consul. itan be a for in the

of the microsoft skype division. skype service will remain available on nonmicrosoft platforms like the iphone and macs. >>> one of the country's most powerful couple is separating but some say there may have been signs of trouble between schwarzenegger and shriver for months. there's a video shriver posted online about life transitions just last month in which she's not wearing a wedding ring. she's also never made it secret of her irritation about learning of her husband running for office by watching "the tonight show" with jay leno. she moved into a nearby hotel. >>> up next, just how private is your smart phone? a senate committee puts execs on the hot seat in search of answer. >> it's an area that can be a real pain when it comes to aging. the new procedure women say worked on their necks. >> and even the pros it seems were at risk, a surprising new study about football helmets and concussio concussions. what parents should know before buying. >>> and good afternoon, i'm jeff ranieri. more sunshine today and wa

at the last count, skype had a 663 million registered users. in 2010, they posted the equivalent of 600 million euros in sales with losses of nearly 5 million. skype gives away its software for free. they're relatively few users. steve ballmer is willing to set aside 6 billion euros for the takeover. microsoft has already introduced a new system for its mobile phones but says google and apple remained one step ahead. >> let's have a look at some marketembers. in frankfurt, the dax closed up 1.2%. the dow jones industrial average closed up word -- upward. the euro is trading $1.44. first greece, ireland, then the portugal will get a rescue package worth 78 billion euros. portugal is the poorest country in western europe and agreed to the cash injection from the european union and the international monetary fund last week. pressure on the country is mounting. >> portugal has agreed to do some serious belt-tightening. the plan includes widespread privatization and a broad liberalization of the labour market. the european union predicts tough time

microsoft is an investor in facebook and currently skype keeps with apple. together, a window's phone equipped might be a game changer worth the $8.5 billion microsoft paid for it to outbid google. >> if you are trying to lead a market and remember microsoft has had a great deal of difficulty oar the last decade, then the price is trivial against that opportunity. >> reporter: both ceos are expected to head to palo alto to meet face to face with their employees down at their headquarters in palo alto. we're live in the financial district this afternoon. jade hernandez, ktvu channel 2 news. >>> the annual google developer's conference is underway in san francisco. the company announced at the moscone center that android is now on 100 million devices running 4.5 billion applications. google also announced a highly- anticipated music service called music beta. they will be able to upload all of their songs into a huge cloud on the internet for listening. downloads won't be possible in order to prevent piracy. >>> members of congress grilled representatives from

a deal between skype and microsoft. i want to check in with shatia brantley with the details for us. good morning. >> hi, laura. there's a lot going on in the tech sector today. microsoft will buy skype for $8.5 billion. skype has 124 million users per month and put off plans for ipl and looking at other options including tie ups with facebook and google. this gives microsoft a recognized brand name on the web. sony aims to restore the play station network by the end of the month. it's been shut down for two weeks after a breach exposed personal data. they have not received reports of stolen info such as credit card numbers being used illeg illegally. google may challenge itunes unveiling a service today. reports say it would be similar to what amazon launched last month. you can play them through a web browser. back to you, laura. >> thank you very much. have a great day. >>> we are expecting a great day across the bay area. i say every day is great in the bay area because i love it here. good morning to christina. >>

skype has been competing with apple and some of microsoft's own properties overlap with skype. now, microsoft's ceo steve palmer and skype's ceo is expected to be here. there is a planned question-and- answer session and remarks are expected by the key players in this acquisition. we're heading up to the fifth floor. we'll be in that press conference and bring you more later on during "mornings on 2." reporting live from san francisco, jade hernandez, ktvu channel 2 news. >> thank you, jade. >>> 7:35. well, police in pleasant hill say there's no sign of foul play in the death of a 57-year- old man. emergency crews found him inside of a mcdonald's restaurant yesterday afternoon. investigators later learned had is death was the dult -- learned -- learned his death was the result of serious problems. >>> a man was robbed outside of a giants' -- of the giants' ballpark. he took willie mays's miniature statue. the victim was held at knifepoint, while the man took the statue. >>> police say lee giang wu had an argument with his girlfriend on sunday morning at his home. she was drivin

skype us support betty microsoft devices like x box and window foam.e question and many want to know will microsoft's purchase change sky which is used by 170 million people across the globe. in san francisco, will kron 4 news. >>catherine: rob is talking a little bit about this. microsoft buying sky? >>rob: one of the biggest deals ever for microsoft. the last acquisition was a failure, it wanted to. they didn't pick up the aho which is, the best thing that ever bought. sky is established and well known. microsoft is coming out with windows seven for the fall. it will give them product for there ex box and connect. when you die play next box tonight will open play hockey and say i just scored a goal against you and you will say no i didn't. it will be talking on sky. >>catherine: this gives microsoft a pixar in that whole field. >>rob: they also do business telephone systems which nobody knows about. it's a billion dollar opportunity for microsoft it's called link. plain old television service is going, were all wireless internet phone calls. it's a g

over skype? nope, satellite. skype is not a unique product. it's voice and video over internet. apple has the same with face time product. it may be what has microsoft concerned. they have wound face time. microsoft doesn't have the equivalent. $8.5 billion. wow. nora, you mentioned you skyped with your mother-in-law over the weekend and liked it. let me ask you this, how much money did you pay for that call? >> nothing. that was her mother's day gift. no, no, no. i'm not that cheap. >> let's think about that. microsoft paid $8.5 billion for something you paid nothing to use. we'll leave it there and see how it works out. >> thank you very much for the service. i appreciate it. thank you very much, scott. we have a lot more coming up. we have live in hayward. weday's coverg eday's ns including our former governor arnold schwarzenegger and his wife, maria shriver are separated. more in a live report. cl >>> our tour across the bay continues this morning. 20 cities in 20 days. this morning, we are waking up in hayward. good morning, i'm laura garcia-cannon. thanks for joining us t

coming up,ike kristoff's begins by, why h theompa microsoft's bigges buy why s the company purased skypechina is running scare and tryingo stop history, e words ofhe american seetar of sta hilry clinton published in the mide of high- level talksith chinese elegion in wasngto. in a magazine interew s goes to y thachinwill fail in what she says isheirffort rest democracy. her aegatns have been descbed as frank. our correspondent has more deils on the interview. >> hillarylint's comments were, in fact, madebout a nth o, but the wer publisd dayn thetlanc monty. e seemed to sgest very stngly that china may be trying to put end to dissent, may be ting to clamp wnn human rights activists,authors, and artists ev. but in the e, that is not sustainable. she said that china opposed the attempts to stophe course of history are a fl's erran-- china's attpts stop t course ofistory are a fool' errand. theiminis ieresting wh this puication of its high level talks beten chinese and amecan ficials here in washington. thisdmintration seems to ve decided that the issuef human righ is one that nds to be diss

buying skype gives microsoft access to a user base of about 170 million people who log in to skype every, using the internet and skype usernames as a complement to the traditional phone network and its phone numbers. microsoft said it will marry skype's functions to its xbox game console, outlook email program and windows smartphones. all of these platforms already have other options for internet calling, but the addition of skype users would expand their reach, making them more useful.ebay bought skype for $2.6 billion in 2005, but its attempt to unite the phone service with its online shopping bazaar never worked out. it wound up selling a 70 percent stake in skype to a group of investors led by private equity firms silver lake and andreessen horowitz for $2 billion 18 months ago. >> darya: news about the end of governors schwarzenegger is marriage. arnold schwarzenegger and maria shriver has announced they have separated, they have been separated for some time they are not saying when. they celebrated the 25th anniversary two weeks ago when they have been living apart. they are co- pa

microsoft wants access to skype us 170 million users.hey will not change anything that could result in upsetting people and prompting them to stop using it. microsoft will plan this type of video chatting and phone calling into their product. like x box they will build an skype us so people can do a chapter there video game consoles. microsoft emotional control of the connect is perfect for skype us. it has a camera tilted. skype us will be added to windows mobile smartphones giving people the ability to video chat on their full well on the go. microsoft is looking at adding sky the video chats about look 30 now program. if that will be really cool. >> microsoft and skied together will bring together hundreds of millions where as tony said billions of consumers and power them to communicate in new ways. what this big thing? they seemed pleased. it posted a statement on their block. here's what the ceo had to say, this allows us to extend not from hundreds of millions but to let charlie billions. we believe this is a platform and a set of

the word skype in many senses means communications to a lot of people in the sense of, i'll skype youoing to stay strong. we're going to have the great assets and opportunity of both companies to just really supercharge that and take it to the next level. >> reporter: skype is now used by 170 million people around the world. not just on their computers but on the move on their mobile phones and even on their tablet devices. microsoft wants to tap in to this connected community. but it's paying a huge price for a business which isn't even profitable. the price tag on skype looks exorbitant but microsoft was competing with others to buy the business. business. >> so this shows that even though it doesn't make money, the idea of talking for free and easily around the world is appealing as we looked as sort of change the way that we talk of change the way that we talk through twitter, facebook, through e-mail and other forms of communication. >> reporter: microsoft will now hope to bring skype to new places like its xbox kinect gaming console but it is paying a hefty price to prove that i

wall street likes the skype deal . the dow gained 75 and nasdaq 28. s&p 500 is up 10. oil prices are creeping back up after a 15 percent crash last week. a barrel of crude now sells for $103. triple a said bay area gas plices have risen 10 cents a gallon since last month. >> capitol corridor routes did better. amtrak has had 18 consective months of year over year growth. >> tough talk on the national debt. a proposal to cut trillions in spending that put republicans between a rock and hard place. >> google unveils ultimate remote control and point out privacy issues that it raises as well >> japan disaster relief without a single dime not getting there. not getting there. i am michael finney,y,y,y,y,y,y, ♪ ♪ free access to chase atm's wherever you are. that's a step forward. chase customers can avoid atm fees with over 16,000 nationwide. take a step forward and chase what matters. >> tough talk from house republicans. speaker john boehner trying to force bill yonce of cuts to spending. following through on that promise could cost the republicans in next year's election

microsoft a little bit lower and word that $8.5 --8.5 billion to by skype.o wi silgs ever. >>> stock prices this morning, we are positive. right out of gate. we have the dow, s$p and nasdaq trading higher and bloomberg trading up, as well. i-hop is heading to the frozen food aisle the new line is french toast and omelettes and griddle and sausage wraps. it's being sold at more than 3,000 wall marts nationwide. this news is in response to that. and how would you buy a car from dandelion roots. that is what ford is checking on. latest on sustainability efforts. i'm jane king from bloomberg news. >> is it edible? [ laughter ] >> i don't know i would suggest that. you don't want to eat your car. >> thank you, jane. have a great day. >> here in san francisco, google is expected to announce the long-awaited music service at a dovps conference. it will be called music data by google. big difference between this and apple users would store their songs on the internet and they could listen to that muse identical any web enabled computer without ever downloading the m

microsoft announced their purchase of skype. microsoft says it will introduce skype into their current devices. skype currently averages 200 million users a month. microsoft is more interested in using skype to catch up with google as an internet power house. >>> microsoft's deal with skype helped boost stocks on wall street. the dow gained 75 points, the nasdaq was up seven points. >>> the postal service is reporting $2 billion in losses just in the first three months of this year. the agency has been struggling with the sharp decline in mail because of the tough economy and the internet. >>> one of the most contagious diseases and there is a vaccine. the two reasons why measles is seeing a resurgence in california and the bay area. >>> and the beautiful spring like day today, temperatures did increase. how long will it be tomorrow and more what is it going to be like this weekend when the cold weather system gets here. >>> late today police identified the man who was killed in a horrible accident this morning. 54-year-old jose

skype has 663 million users. make microsoft a bigger player on the internet. >>> and facebook may have to come clean. they might have clean house, in fact and kick off millions of their users. the new survey finds that more than 7 million facebook users are under the age of 13. that's violating the terms of service. among the minors, more than 5 million are 10 years old or younger! consumer reports found the kids' facebook accounts were largely unsupervised by parents exposing them to malware threats, predators and bullis. >> kids are incrediblely tech savvy these days. >>> there is a debate in san francisco on whether the castro neighborhood is losing its identity. that area has long been a gathering place for gay people but more and more straight residents are moving into the area and several gay businesses have been closing. >> it's like saying that, you know, gay street and [ indiscernible ] street in new york should change. and i think it's important that the gay people have a place to call home. >> i think

also, microsoft plans to announce today that it will buy skype for about $8 billion. skype has 124 million users each month. this will be the biggest deal for microsoft. we expect more news on that today. >> thank you much. >>> uc berkeley narrowing down locations for the second campus. there are six finalists. alameda point, berkeley aquatic park. golden gate fields, richmond station and the sight on the emeryville-berkeley border. it's to consolidate the existing laboratory programs. the majority of the 4200 employees work on the main site in berkeley hills, 20% work in the east bay. a decision will be made by november. >>> the mississippi river reached a record level. the city fighting water for weeks. now the river crested at 48 feet. one emergency management official says it will take a few weeks before the crisis is over. >> all we can do now is let the water go down, try to keep people safe and patient. give them the assistance they need. this is going to be with us for another few weeks. >> downstream, the trouble just started. many people forced to move to hi

. >> software giant microsoft today announce largest deal ever buying skype.t phone service for 8 and a half billion dollars. ceo of both company announce the deal today in san francisco. purchase gives microsoft access to a user base of about 170 million people who why you have skype every month. >> microsoft and skype together will bring together hundreds of millions or as tony said billions of consumers about and empower them to communicate new and interesting ways. >>reporter: skype users made 207 billion minutes of voice video calls last year. most of that was free calling from computer to computer which has made it difficult for skype to make money. microsoft says it will put skype functions into the x box game console, outlook e-mail service and the window smart phone. >> just ahead. good reason to wake up early tomorrow morning if the weather cooperates. celestial show just before daw dawn. we have that story. but first this p-1 inch did he advice that can help you get the small business off the ground and much more our planes start flying when it's da

skype actually does get a fair bit of revenue. >> but it takes an annual loss. >> that is when you arertizing a purchase price. the operating business is a fairly good business. and the opportunity to take out a broad consumer communication, connect it in with what the future of what the pbs will be, how corporate communication works -- what the pbx will be and how the corporate communication works, it is a really great deal. >> the financial times wrote this, they said it smacked of corporate desperation. microsoft is facing irrelevance and must do something to stay in the game, thus the new purchase. >> it is a great purchase that a lot of innovation will come out of. >> bill gates went on to say that he did not believe, as some have suggested, that the agent -- the age of the pc is coming to an end. >> the pc is the tablets. all of these digital devices are going to work together. microsoft rights to everything that's of -- software runs on. you will see pc's where you will say, is that a tabloid? is that a phone? the words are going to change because the innovations are so rapid. >

then skype.e your interaction. >> should you want to interact with another person again, skype works with the ipad because you need the cameras to chat with friends and family. there is skype for android and the blackberry playbook but audio only at this point. you know the drill like your personal computer, video chat with friends and family or in this case, fredricka, colleagues. for free over video anywhere in the world. that's what we're talking through right now over my computer web camera, but we could do this tech time interview over an ipad too, so skype is great and speaking of the ipad, they have apples's video chatting service called face time but you need wi-fi where skype works over 3g. >> you'll tell me something new about cnn? >> right. i'm not choosing this app because we're the talking to the cnn network. any news network can learn a lesson from cnn on how to create an amazing app. this is the free cnn app for ipad. it is organized in such a fluid and intuitive way. access to all

. >> mike solve the klotion to deal to buy the inpet phone service skype.would be the biggest deal in the software maker 36 year history, too. according to the "wall street journal"the deal would be worth 8 and a half billion dollars. roughly 6 63 million users worldwide use skype to make voice and video calls. buying skype would give microsoft more clout as it tries to become a bigger force in the smart phone market. the deal could be announced tomorrow. >> google expected to launch long awaited music service at developer conference in san francisco tomorrow. it will be called music data to start difference between this and i tunes is users will up load and store the songs on a cloud base server and then listen to at the time music on phone tablet or computers. the music if he ever down loaded on to devices. keeping it out of the hands of music pirates. >> that cloud thing is so odd. you never know what is in it. mike is up next. >> you always have a cloud over you. >> yes. there you go. >> about dark cloud. >> all right 2 great nba games on tap. we have t

skype has 170 million users worldwide. microsoft also hopes skype can improve its xbox gaming system and outlook e-mail programs. in other news tonight, president obama has made his first trip to the border with mexico since taking office. speaking in el paso, texas, he said the boarder is more secure now than ever before. reason enough, he said, for congress to act on immigration reform for the 11 million people living in the u.s. illegally. here's john blackstone. >> reporter: for pedro ramirez, there is one hard fact about immigration reform: his future depends on it. >> i have aspirations and dreams just like anybody else. >> reporter: he is student body president at california state university at fresno where he'll graduate this month following years of accomplishment. >> in sports i did marching band and i did extracurricular activities and i excelled academically. and so i felt i was as american as anybody else. >> reporter: until his parents admitted to him they've been living here illegally since he was three year

i've used it for years you know i skype with my grandmother is. in russia and i'm just wondering if that means that it's going to change because microsoft can take something that isn't broken and then try to fix it in whatever their. technology and then just undoubtedly ruin it because i can i still can navigate windows i'm a macro and i have a hard time figuring out how to do much i'm going to like open microsoft word so i hope i don't mess with yeah you know i can see one change that might potentially work that should bring back clippy the paperclip remember him and microsoft word and when you start you know a call like oh i see you're calling your mom on mother's day you can also send an e-card for you would be great you want to be assisted. me to the money do you guys know that well that's the whole contention about it is why is this valuation eight point five billion dollars is this too much because they haven't really figured out a way to monetize it would user base which is the question we have with all these tech companies i mean facebook

. >>> microsoft's mega deal to buy skype for $8.5 million fueled trade, but not microsoft. on the other hand, shares of ebay, which owns a large stake in skype, rose 2.5%. >>> a surprise departure by the ceo of boston pacific sent shares tumbling almost 9%. dean foods jumped on higher than expected quarterly profit. weight-loss program operator me difast rose 17% after reporting earnings that beat expectations. keep an eye today on disney. after the bell, shares fell on revenue that missed expectation. elsewhere, oil rose to $103 a barrel. all gas prices fell for the fifth straight day. >>> gm will invest about $2 billion in 17 u.s. plants and adds 4,000 u.s. jobs over the next year and a half. the u.s. postal service posted a $2.2 billion net loss for its second quarter. and hinted it may need a congressional bailout by september. >>> finally, it was once an unthinkable relationship, but today, how close as china's communist economy become with america's wall street? later today, the hot ipo seeking to raise millions will be china's top online dating website. >>> the walk

well who is buying skype? and why rome may be a ghost town next week.lus we'll tell you how mccarthy played it when he popped the question to this new fiance. >> coming up, a pair of overi'm games in the playoffs. and why the world smelled so fitchy at a predator's game. you are watching "early today." >> good morning, and welcome back to "early today." i'm lynn berry. here are some of your top headlines this morning. in a speech last night, house speaker john boehner said republicans will insist that any increase in the u.s. debt limit, which is necessary to avoid an unprecedented u.s. default on its financial obligations, must be accompanied by trillions of spending cuts. we'll hear more from him later on the "today" show. >>> jan brewer will ask the supreme court to lift an injunction blocking parts of the controversial immigration law. it took effect last july. it was stripped of a provision that would have given police the power to check the immigration status of suspected criminals. >>> an orthodox jewish newspaper is apologizing for editing out s

skype... . >>> it's a done deal.icrosoft has agreed to buy the popular internet telephone service skype for $8.5 billion. it's the biggest deal in the software maker's 36-year history. buying skype would give them a valuable communications tool as it tries to become the bigger force in the increasing cell phone market. they don't expect any immediate changes to the video chat service. microsoft could have big things in the works. >> they will started aing it into their existing products. so let's say you have an xbox consul and using it to do online gaming. to make the communication with the folks you are gaming with really seamless through skype because they do that really well. >> they boast about 663 million users worldwide. >>> well, it your satellite t.v. signal goes to snow or your car's gps puts you in cleveland it could very well be caused by a collision in space. space junk is up there zigzagging at 10,000 miles an hour. another look at nasa's proposal to use laser beams to rid the world of potentially dange

skype served notice it was withdrawing its initial public offering. it was going to go public last august. the deal is worth $8.5 billion from microsoft. about 170 million people worldwide use skype for video calls and phone chats. >>> ibm's jeopardy winning computer watson could now be called dr. watson. they crammed him with million entries which watson used to beat two jeopardy champions. the ibm team is working with doctors to fill that computer with medical information. and it is hoped that dr. watson will eventually be able to help real doctors diagnosis disease and injuries. >>> zombie preparedness, the centers for disease control and prevention has launched a campaign warning of a zombie attack. but the tongue in cheek program is meant to draw attention to some very serious and real disasters. >> when asked about zombies and radiation. and interesting the spike. so i thought zombie preparedness. i walked into my boss's office and we are going to do something with zombie preparedness, i don't know what. he didn't throw me out. >> the cdc says t

. >>> microsoft announced that it will be paying $100 million for skype. skype is the world's largest provider of international phone calls but only 5% of users pay for the service. >>> that deal sparked trading at wall street along with strong corporate earnings report. the dow jones gained more than 75 points. >>> and for the first time coaches have independent ratings of helmets. tom vacar is live with how one high school plans to use this new information, john. >> reporter: here at castro valley high the athletes are just wrapping up soccer and track practice but some coaches already looking forward to football. coach nick mcmaster checked refurbished gear he got just friday. including these helmet rated in the middle. top rated were not most expensive. >> it's good news, it's surprising news but it's good to know. >> reporter: researchers spent eight years determining how helmets protect against concussion. testing all 10 available models. the lead researchers told me the best cut concussion risks by half. virginia tech researchers gave this helmet, r

for eight point five billion dollars something that some are skeptical as to the valuation of skype and why microsoft would want to pay so much money for it when there really isn't a clear way that that can be monetized to that extent do you find any think that this is and that's why it's. still a large extent especially with the launch of their connector earlier this year putting a spy device in everybody's phone that is literally hooked up to the internet twenty four seven three sixty five in less you pull out the ether in a cable or unplug it and if you read the article at m s n b c connect controls the future a game controller and everything the makers of it brag that they get daily phone calls from large corporation and members in the military industrial complex both the military and the government and how they can use this information and they want to basically bring this into a holiday experience and it's the first video game system to give person to person video conferencing and the quality we're now seeing over broadband so it makes sense for them to via skype because they

. >>> microsoft is paying 100 million for skype. microsoft says it will combine skype with their game console and windows smart phones. >> talking to friends and colleagues around the world will be as seemless as talking to them across a kitchen table or conference room. >> microsoft says it plans to add advertising to skype to increase revenue. the deal is the largest acquisition deal for microsoft. >>> general motors announced today it plans to invest $2 million in upgrading its plan. the auto maker says the spending will allow them to save $4,600. the company is waiting until finalizing tax deals with local governments before saying where those new jobs will be added. >>> jackie spears says she is going to file a lawsuit against a company that is moving and is leaving their workers behind. vwr is moving. spears said vwr has been in brisbane for 50 years but was recently sold. >> you have a chicago hedge fund that wants to make another billion dollars. i'm not putting up with that. so i'm going to be on them, yes. >> the union rep

many of the skype users use the free phone service. the deal is valued at $8.5 million. >>> the biggest bay area city is facing cuts to a fire department. lloyd lacuesta is live in san jose to tell us how many stations could lose fire trucks. >> reporter: there is good news and bad news when it comes to the san jose fire department and budget cutbacks. there will be no fire station closures but it's stations with two trucks may be subject to rotating brownouts. one state station will have to get by with just one fire truck. there are five fire stations like fire house two with two trucks but that will change. >> you will have one and another piece from another station which could be five, eight miles away are going to come and back fill into that. there is going to be reduced time especially if you have a big incident. >> reporter: the city saves money by not having to pay for five firefighters who would staff that second truck. but the possibility of delayed response time does not it is well with residents. >> you lose half the fire t

. >> bill gates believes that the company's takeover of skype is a great deal. he had supported the multibillion-dollar purchase of. this is the largest ever acquisition by microsoft. >> the idea of videoconferencing will get so much better than it is today. skype does get a fair bit of revenue. >> it makes an annual loss. >> that is when you are amortizing the purchase price. the business is a fairly good business. the opportunity to take out a broad consumer to medications connected with the future of what the pbx will be -- anyway, it will be exciting to see the ideas coming out of microsoft research, what they come up with. >> "the financial times," said it smacked of corporate desperation. microsoft is facing internet irrelevance and it must do something to stay in the game thus this purchase. >> this is a great purchase that a lot of innovation will come out of it. >> at the scottish first minister alex salmond will form solid's first majority government. they were elected on a promise of referendum on independence. this is all but inevitable. >> devolving

many of the skype users use the free phone service.he deal is valued at $8.5 million. >>> the biggest bay area city is facing cuts to a fire department. lloyd lacuesta is live in san jose to tell us how many stations could lose fire trucks. >> reporter: there is good news and bad news when it comes to the san jose fire department and budget cutbacks. there will be no fire station closures but it's stations with two trucks may be subject to rotating brownouts. one state station will have to get by with just one fire truck. there are five fire stations like fire house two with two trucks but that will change. >> you will have one and another piece from another station which could be five, eight miles away are going to come and back fill into that. there is going to be reduced time especially if you have a big incident. >> reporter: the city saves money by not having to pay for five firefighters who would staff that second truck. but the possibility of delayed response time does not it is well with residents. >> you lose half the fire tru