Microsoft’s Skype software will get a big boost from a $50 million deal from Intel.
The software maker said Friday it has signed a deal to buy Skype for $1.2 billion from Skype Technologies, the makers of Skype.
The deal was first reported by The Wall Street Journal.
The purchase of Skype by Intel gives the company access to a software engine that can handle video calls, and Intel also owns the camera app in Google Chrome and other browser versions.
The news was first published in the Wall Street Times on Friday.
Skype’s software already has been used to connect Skype users with video chatbots and other services, such as video conferencing.
The move by Intel could mean Skype will be a key component in the search engine giant’s efforts to expand into new areas of the market, including gaming and cloud computing.
Intel also has a $3.2 trillion cash pile.