- Associated Press - Friday, May 20, 2011

SAN FRANCISCO (AP) - Internet calling service Skype has cancelled its IPO now that it’s agreed to be sold to Microsoft for $8.5 billion.

Skype served notice that it was withdrawing its initial public offering of stock in a Friday filing with regulators.

The IPO became moot last week after Skype accepted Microsoft’s takeover offer. Skype, currently owned by investment funds and eBay, had filed its plans to go public last August.

Microsoft Corp. hopes to complete the Skype purchase by year-end. It will be the most expensive acquisition in Microsoft’s 36-year history.

About 170 million people worldwide use Skype for video calls and phone chats.

Microsoft plans to weave Skype into its Outlook e-mail, software for mobile phones and xBox 360 video game console.

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