we actually see what happened last week, the microsoft outage, is demonstrating why we made the right decision. we were able to have a single point of contact. microsoft kept us up to speed on what was causing the email delays. we were in close contact with them. we lost no messages. grant it, there were some delivery problems for a while. when the issues were resolved and when we started receiving email again, it only impacted us for about four hours. again, since nothing was lost, it was perceived as a delay by our users. there was a single message we could provide out to our users at the system at the time. in the past when we had outages it was a complex problem to solve. you had seven systems. if the outage happened in the evening you were calling workers back in. with a microsoft solution they're available to us 24/7 to us to answer all our questions. obviously they are proactive in addressing the issue. because i come from the private sector in a previous life and now work in the public sector, the central i.t. department that our customers expressed concern, we come fought cen

we were extremely impressed with the microsoft security solution as it related with the certifications they have and the fact they have clients if not as high or higher security requirements than the city does. it gives us a level of comfort that it gives us with solutions that we can rely on a security standpoint. again, back to the partnership, i know the outage is seen as a negative thing. we know we have a partner when we need to deal with security incidents, when we have questions about security, we have a trusted partner that has a record of being proactive and we can rely on them to work with us. >> it's designed from the ground up with security and privacy needs of our customers. as john mentioned, we're provisioning for, you know, health organizations, financial organizations. you know, i think of glaxosmithkline and jpmorgan chase and those that have stringent security issues. again, microsoft has programs in terms of the government security program where we proactively share security information with our governments around the united states here. so it is paramount to us. it

the future of global communication, and microsoft wants in on the action. let's face it-- microsoft is still a huge laggard when it comes to the internet and the consumer market. not only is "skyping" so popular that it's a verb, but the deal gives microsoft access to skype's 170 million loyal web users. microsoft c.e.o. steve balmer explained it at a news conference, saying the plan is to put skype technology into microsoft products. >> microsoft and skype together will bring together hundreds of millions-- or as tony would say, billions-- of consumers, and empower them to communicate in new and interesting ways. >> reporter: those new and interesting ways are likely to include adding skype to window's mobile phones, outlook email, and even x-box game consoles. still, the news had many technology experts scratching their heads. 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 need

next, the first year. microsoft wants to actually close a deal within this year and expects that it will produce products, excuse me, profits for the overall company within a year after its acquisition. imagine if you are using email, office email and you have the skype function, maybe microsoft will ask you, will you pay me 2 or 3 dollars more for the skype function incorporated in our office email? those are the sort of things that microsoft in redmond washington will come out of this deal. >> brown: your example, it's this larger context you're talking about, this convergence of communication, information and entertainment. that is the larger battle here. >> that is absolutely right. you see big, multi-billion dollar companies scramble ing who are making these big business plan adjustments like like microsoft. come cast with conversions buing nbc universal to be more of a media player. at&t wants to fortify and be the biggest wireless provider in the country. so they're going to buy t- mobile. what's happening is

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 driving down to blt palo alto to meet with employees. i thought that was interesting. kind of to show it's always good to have the real thing. >> in living color. >> coming up, why facebook should have more than 7 million fewer members. >> new study that could have parents checking their children's habits. >> and millions of americans dry mouth is uncomfortable. it can also lead to serious dental problems. [ male announcer ] new act total care dry mouth is alcohol-free and has fluoride to strengthen teeth. stronger teeth and dry mouth relief. >>> sad news on the peninsula. city announced this morning the death of mayor omar hamad. he died this morning. he collapsed in front of his home. he was taken to the hospital where he died. he has been serving as mayor for five months. he was 46 years old. >>> a new report shows a disturbing t

the tablets. all of these digital devices are going to work together. microsofthts 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. >> it is interesting you say that because the longtime microsoft software chief who left, as he was leaving he said, look, we've all got to imagine a post-pc world. we will be wearing them, carrying them, having on our walls. they will be all around us. how does that square with your vision of where we are going in the next generation? >> very similar to what was said when microsoft was founded in 1975. >> some breaking news that is coming to us from the ap news agency from pakistani police in northwest pakistan. they are saying that militants there had attacked at checkpoints, killing two police and 15 insurgents. we do not have any other details than that. police are saying that militants have attacked a check point where two police and 15 insurgents have been killed in pashar. that is the same p

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 driving down to blt palo alto to meet with employees. i thought that was interesting. kind of to show it's always good to have the real thing. >> in living color. >> coming up, why facebook should have more than 7 million fewer members. >> new study that could have parents checking their children's habits. >> and millions of americans dry mouth is very common. a lot of people aren't really aware of it. water alone isn't a solution. dry mouth can have a profound effect. it can lead to bad breath, to tooth decay. it can lead to just general discomfort. i recommend biotene because it contains supplemental enzymes. biotene works really, really well. they make an oral rinse, a mouth spray, and toothpastes. biotene is specially formulated to make the mouth moist and to really make your mouth feel comfortable. we have patients who really l

>>rob: one of the biggest deals ever for microsoft. 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 good day for microsoft the wildly overpaid, google batted out, facebook said will take it. allot of vaccines going on. couple years ago meg whitman people laughed at meg whitman for buying sky. but it didn't really work. wall street went up, put your money where your mouth is they paid abou

and this is the third time it's been bought and sold. microsoft been struggling to prove it can compete with the likes of google and apple. >> this is a big day for skype and this is a big day for microsoft. >> now as it tries to make an impact on the mobile phone world, it wants skype to help it become a bigger force in communications. the two partners in this huge deal told me they now had ambitious plans. >> it's really kind of a rare asset and the word skype in many senses means communications to a lot of people in the sense of i'll skype you. >> rest assured the skype brand is going to stay strong. we'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 e

we'll see how technology stocks are dealing with the microsoft deal as well. been a real roller coaster ride for oil speculators as crude oil prices spiked and dipped in the last two weeks. oil dropped 15% last week. it's steepest decline in two and a half years. and there could be more wild swings as the american petroleum institute announces its inventory numbers later today. >>> time now 6:51. rodent pellets may be used soon on the islands to get rid of mice. federal wildlife officials say the mice are eating too many eggs and baby birds and that's causing a population decline. animal activists they oppose the rodent pellet plan. they're afraid other creatures will eat the rodent pellets and spread them into the food chain. now if wildlife officials decide to go ahead with the rodent pellet plan, it wouldn't begin until next fall. >>> well, a judge has to make an important decision in the jaycee dugard kidnapping case. why a book coming out this summer could complicate that decision. >>> also right now the world's largest plane is headed for sfo where airpo

the extensive lev system has kept floodwater away from most neighborhos. >> now, wuld you pay $8.5 llion for a cpany that's losing moy? if y're microsoft, the answ is yes. day,he comter giant bought skype, t fr intern tephone service in its biggest deal ever. microsoft hoped t acquisitn wi keep it revant in and incasiny mobile wld a give it acss t a user base of roughly 170 milon people who log on to skype every moh. but is i wortht? our tecolog corresponde has all t details >> crost busine soware powers 90% of computers d the other a evolutionizes theway many commicat skype is bng sllowed up now by microsoft. it's just eght yea since ske startedelping people to make cls over th internet f nothing. this is thehird time it habeen bought a sold. microsoft s be struling to prove i can compete wi theikes of goog and app. now,s itries make an pact onhe mobe phone world it wants ype toave did beme a bigger fce in communications. e two parers in ts hu dea told m they now vembitious ans. >> it's really kind of a rare asset, and the wd skype many sense means communicionso a lot o pele i the sense ul askype yu -- of i'llkype you. the skype brand

after the san bruno pipeline explosion, some homeowners are taking a big step in the rebuilding process today. >>> microsoft's new acquisition may be an $8.5 billion game changer. >>> good afternoon. topping our news, the man accused of ramming a car on a san francisco-bound flight made his -- ramming the cockpit door on a san francisco-bound flight made his first court appearance today. he was shouting "god is great" in arabic as he ran to the door. this morning in federal court, it was revealed that rageh almurisi had been living in new york. he was traveling with i.d.s with multiple addresses and a california i.d. card. he had two postdated checks. one for $8,000 and the other for $5,000. prosecutors say he did not have any luggage checked or carry- ons. he said he was coming to the bay area to visit relatives in vallejo. but according to prosecutors, his relatives did not know he was coming from. rageh almurisi did not enter a plea today but is set to come back friday for a detention hearing. you can read that criminal complaint for yourself at ktvu.com. we've posted it along with our other coverage on th

it's the biggest purchase for the microsoft company in its history. r big weather story tonight, cooler weather tomorrow. we that temperatures in the '70s and in. it was cooler closer to the coast, temperatures only in the mid to upper 50s. thank-you to fog the blinker along the coast road the day. the sea breezes are picking up, it will carry that cool marine air into tomorrow. starting the day a little bit more warm the what we saw today. it keeps us warm overnight and cooler during the afternoon. by 4:00 temperatures cooling into the upper 60s for inland valleys. everywhere else temperatures in the '70s. your extended forecast, not much change of the next few days. fog in the morning and sunday afternoons. over the weekend much cooler weather as a couple storms push through. 30 percent chance of rain on saturday and a 40 percent chance of rain into sunday. >>kimberlee: posted a story about how teachers in santa clara are passing out fliers to parents about the budget cuts. let's check out the comments of the day. it's such a tragedy pretty soon we w

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 ahead. >> it has always known these programs will be not any kind of sunday walk in the park. they will be very difficult and demanding. >> in return, portugal will pay its rates of about 6% on its loans. far lower than without the european union guar

they do provide mapping services but say that users can disable the tracking feature. >>> microsoft made its largest purchase in company history. $8.5 billion for phone provider skype. lauren simonetti explains the potential impact. >> this is a big day for skype at. >> reporter: microsoft's $8.5 billion cash purchase of skype brings together millions of users. >> sometimes rebuild things ourselves. we partner and form an alliance. other times we make an acquisition. >> reporter: skype has what is called an engaged user base. >> people in remote locations will use it to see their babies being born it difficult to reach locations where someone might want to serve as. >> reporter: big deal is also touted for the consumer benefits. >> we see skype on a lot more devices. tvs, phones, pcs, laptops, tablets. >> reporter: video is a big business and is getting bigger. >> over 40% of the traffic is video. video ads are one of the biggest opportunities we see going forward. >> there is some concern that they paid too much for its. it looks like microsoft came in over-the-top and snatched it up in

the takeover involving microsoft and skype. >> and the duke and duchess on their honeymoon now. what we have learned about william and catherine's romantic getaway. ,, ,,,,,,,,,,,,,,,,,, microsoft has just confirmed it's buying "skype." the software giant will pay 8- a-half billion dol >>> a big deal to announce in the tech world this morning. microsoft has just confirmed it is buying skype. the software giant will pay $8.5 billion in cash for the internet phone company. it is the largest transaction in microsoft's history. skype has some 663 million users. coming up at 6: 45, cnet's brian cooley will join us with more details on what this means for the tech industry. >>> it is 6:25 now. the sharks hope this is the night. they can finally send those red wings on summer vacation. san jose needs to recover from sunday's devastating game 5 loss in the stanley cup play- offs. you know they blew a big lead in this one. sharks won the first throw games of the series. they need just one more to advance to the western conference finals. they will play vancouver if all goes well tonight.

title of president 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 war

that all kinds of cool applications you'll see at the make it fair, based on connect. that microsoftever imagined p. we have to do a commercial. we'll be back in a minute. l!7om steve«ñ&, >>> my thanks to my guests, steven levy and dale dougherty, two of the greats. i highly encourage you to buy steven's book, "in the plex" and attend maker fair next weekend. i'll see you back next week. i'm scott mcgrew, thank you for making us part of your sunday morning. from financing a solar project for the milpitas school district to funding the institute at golden gate. because when you're giving, lending, and investing in more communities across the country, more opportunities happen. never in my lifetime did i think i could walk 60 miles in 3 days. 60 miles compared to what a cancer patient goes through is a walk in the park. from the moment i registered, people started immediately supporting me. i walk with my sister. our relationship has gone to a whole new level because of training together. you meet the most wonderful, inspiring people. when you accomplish those 60 miles, it's truly life

. >> and if i may add more broadly from the microsoft perspective. typically what we see is the opportunity to redeploy those resources to work on what i call the higher order mission of government which is about better servicing citizens in terms of working on line of business solutions where those core competencies really come from government, right? to be able to offload some of the delivery and storage elements associated with email in this case, now government employees can focus on some of the higher order mission line of business solutions that are really going to benefit citizens in the city. >> thank you. >> more questions or are we at the end of the question period? we've worn everyone out with the questions. all right. well, we want to thank everybody today. i know you've taken your valuable time. if you have any more questions, feel free to get in touch with us. i know gail and i and the other folks are available to talk about any other questions you have in more detail. so, again, thank you for your time and thank you all for coming today

it is the most expensive transaction in microsoft's history. skype an internet phone company has 663 million users. the deal gives microsoft potentially valuable communications tool as it tries to make a bigger splash on the internet and in the smart phone markets. >>> a cash crisis and now a threat to public safety. why it could take longer for someone to respond the next time you dial 911. >> plus, formula or breast milk. which is best if you want your kids to behave? >> a gorgeous day in the bay area. plenty of sunshine out there and blue skies. today's actually going to be the warmest day of the week. but we have some rain in store a little later on. i'll tell you exactly when to expect that rain in just a bit. ,,,,,,,,,,,,,,,,,,,, potential station brown-outs. its all to help the city close a 115 budget >>> nice day on the dow there. fire officials are sounding the alarm about potential station brownout to close a $115 million budget shortfall. fire department is proposing rotating reduction in staffing. that meanings every day this summer

it's safe to say microsoft did not make the transition to tablets very well. apple's software powers most tabl tablets, a few run on android. microsoft is fighting for market share on cell phones, but has captured just a sliver of that market. so what's left? cars. microsoft leads the way on the automotive platform. notably, with the ford sync, a voice command car computer system that can tell you the traffic and manage phone calls. show you weather radar, find a track on your ipod, point you to the nearest gas station, and tell you how much the gas will cost you before you get there. steven bridgeland is senior product manager at windows embedded automotive. he said, all day i think about cars. >> i certainly do. >> lots of little boys do, you get paid for it. joined by rich from bloomberg "business week," maggie shields of the bbc. i'm going to come right and say it i own a ford, i have the computer in the car. and i, am convinced that once people begin to use these things on a common basis, and this is more than just a little trip computer or telling me, giv

perfect and the pentagon could not provide personal information and the largest cab industries, the microsoft could not provided. they just recently found they have said their vulnerability and it cannot be protected. [tone] [applause] >> thank you. i am a cabdriver. one time, the homeless guy so drunk -- digest stop by the red light and he was so drunk he spit on my windshield. i a just can't do anything because i'm just a cabdriver. maybe he beat me or maybe he broke my window and i can do nothing. we're not challenging any rule or regulation, you are powerful and the budget people are making big decisions. but sometimes we come here to ask you, planes of people getting into it taxi is a like to be in the taxi exclusively and privately. most of the taxi rider's have an iphone. i just took the muni to come here. maybe they could put a good size television and they are happy to see a year advertising the muni because there are people all the time but not in the taxi because people are watching their e-mail with very busy people. i think this meter increase, you can do a little more imaginatio

perfect and the pentagon could not provide personal information and the largest cab industries, the microsoft could not provided. they just recently found they have said their vulnerability and it cannot be protected. [tone] [applause] >> thank you. i am a cabdriver. one time, the homeless guy so drunk -- digest stop by the red light and he was so drunk he spit on my windshield. i a just can't do anything because i'm just a cabdriver. maybe he beat me or maybe he broke my window and i can do nothing. we're not challenging any rule or regulation, you are powerful and the budget people are making big decisions. but sometimes we come here to ask you, planes of people getting into it taxi is a like to be in the taxi exclusively and privately. most of the

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 power from westminster was supposed to ensure scotland's power inside of the u.k., not insure its exit. as alex salmond starts his second term as prime mi

buying skype which means they, one reason they want to do it to build enhanced messages into the microsoft phones for more connecttivety. i am urging you to deny the d.r. and look into the argument for this as carefully as i could. i couldn't find a reason to latch onto it and in terms of it being a lot of antennas, that is because we decided to have a lot of antennas and went with many, many, small with weak output and alternative plan could have been to build 12 towers across san francisco in which case it would be, but we decided not to do that and the argument that there is a lot of towers is circular. yes, there are a lot of towers because we decided to have a lot of antennas. in terms of there is no comprehensive plan, i think, a., that remains to be determined. but b., the desire to have one sounds great and is in the very, very are early stages. i was at the board of supervisors meeting where it was discussed casually and one thing president chiu said was it sounds good, i don't know where the money would come from to do it was the comment he made. it may be something that sounds g

the news continues this morning. 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. >> y

the most expensive transaction in microsoft's history. skype, an internet phone company, has 663 million users. the deal gives microsoft potentially valuable communications tool as it tries to make a bigger splash on the internet and in the smart phone market. >>> next, slimming down for summer. a look at which diet plans are worth investing in and how social networking can help. >>> plus, our first chat with the man who is about to take over the cbs evening news. hey marcel, watch this! hey marcel, watch this! [ buzzer sounds ] [ cheers and applause ] ♪ hey marcel, watch this! yeah, marcel! -marcel! -hey marcel! are you listening to me? marcel! [ male announcer ] only at&t u-verse lets you follow your favorite channels on one screen. just $29 a month for the first six months -- dvr included. results raised some eyebrows. the jenny craig diet plan -- which features pre- pa >>> consumer reports has rated a variety of diets plans and the results raised some eye browings. the jenny craig diet plan which features prepackaged food came out on t

they will approve the purchase if you agree to pay $35 fee for the transaction. microsoftand word that $8.5 --8.5 billion to by skype. it's the largest ago wi silgs ever. >>> stock prices this morning, we are positive. right out of gate. we have the dow, s$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

the u.s. executive suite at microsoft at focus. fund manager david einborn saying the microsoft board should replace steve ballmer, saying the software maker suffers from charlie round management. they have been hemorrhaging share to apple and google. apple ipad taking a huge bite out of p.c. running microsoft windows. so the market this morning feels like preholiday trade here. we're quiet. we are slightly lower across the board. the bloomberg business report -- the silicon valley. next time you head to berkeley you might notice people with nose in a book. it's third well-read city. live at the new york stock exchange, i'm jane king, bloomberg news. >> all right, jane. thanks a lot. >>> 6:47. let's make it. if you suffer from allergies, and they seem worse than usual this year, you can pin the blame on climate change. our media partner california wash cites a study that shows temperatures get warmer, and more carbon dioxide released in the atmosphere, plants boost their pollen production. the study by quest diagnostics indicate in

microsoft is going to pay $8.5 billion for skype. it's more than ebay paid for it before they dumped it. in fact, it's the most microsoft paid for anything, ever. press conferences in san francisco and london at 8:00 a.m. our time. how are they going to connection the conferences? 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 schwarze

>> iope they- i tnk they are ping tontegte it across the entire ptform o microsoft prodts. it wil bahallenge, but they do it right the goal will be to integrate it into ur offi, your mobe pho, your homaleyourearch enge that compes wi google. also now on t ge consoles. you c do all o tt, skype is a very stiy product. people who use it stk wi it anit gets integrated ross the boar having saidthat microsofdoes not havthe greatest record for tegrating some of thes acquisitions we are not gog tknow whether this deal works out for the for at lst another2-24 mont. >> is this really a storyf the demise of the or the rise ofobile, or is tat puttint toimpl >> is re than that. it isommunication and what it ans. i looking at you thrgh a camera. people e nogoing to be able to d at fm their homes on the x box, ann their mile phones a tabts. that is the fute. microso is trying t cptur a piece tha th are goingp against ggernauts, google with googled voice and all of the mmunation tools they are pridin on the other side yohave apple. and the elhant in t room whaveot talked about is facebook.

it is the biggest deal in the history of microsoft. vu's jade hernandez explains how the company plans to make an even bigger splash on the internet. good morning, jade. >> reporter: good morning, tori. we just came down from the fifth floor of the four seasons along market. this is where the press conference was held this morning, where microsoft announced to the world officially skype is theirs. microsoft bought skype for $8.5 billion. the deal was inc.ked last night. it came down to a bidding war between microsoft and google, known rivals. experts are weag in. we spoke to our tech expert. what my cre soft shelled out was a bit surprising for him but it was clear, he says, microsoft didn't want want google getting -- getting their hands on skype. skype has been completing with apple's emerging times, integrating skype capability into a windows phone would be somewhat some are calling a game changer. let's listen to the scoes from -- to ceos from. >> it's exciting to be used in the context when people say can i skype you? we're also pa

that would make it the biggest deal in microsoft's 36 year history. skype has more than 660 million users worldwide. and checking in on the numbers this morning that news could help technology stocks this morning to a higher opening. some small gains yesterday as you can see with the dow, nasdaq, s&p 500 all posting gains. right now microsoft stock looks like it will open lower on that news. >>> sony plans to fully restore its play station network by the end of this month. the company shut down the network that links gamers around the world after a hacker breached security last month. sony is still investigating how that hacker got through. more than 100 million online accounts were compromised by that attack. >>> all right. time now 5:20. japan does an about face on nuclear power and what the japanese prime minister's doing to take responsibility for promoting nuclear power in the past. >>> the bay area police department has an old tool back in its arsenal. how much it costs to bring back the oakland police helicopter and why the department says it's

the purchase gives microsoft the acess to a user base of people who use skype every month. >> microsoft and skype will bring hundreds of millions and billions of consumers and help them communicate in new interesting way. >> scipe discip made 207 billion minutes. most of the that was free calling from computer to computer and made it difficult for skype to make money. microsoft will put functions in the xbox came console . windows smart phone. >> general motors makes a commitment to the economy. gm upgraded factories. they hope to create or save 4000 jobs. laid off workers will be rehired first. 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