This morning, the Wall Street Journal reported that Microsoft is in talks to buy Internet phone company Skype Technologies SA for between $7 billion and $8 billion. The Journal describes the deal as “the most aggressive move yet by Microsoft to play in the increasingly-converged worlds of communication, information, and entertainment.” If the deal goes through, it would rank as the largest acquisition in the Microsoft’s 36 year history.

Skype was founded in 2003 by Niklas Zennstrom and Janus Friis. eBay Inc. purchased the company in 2005 for $2.6 billion in cash and stock. In 2009, ebay sold a 70% stake in Skype to a group of technology investors including Silver Lake Partners, venture capital firms Index Ventures and Andreessen Horowitz, and the Canada Pension Plan Investment Board.

In the eight years Skype has been operating, the company remains to produce solid profits. In 2010, the company posted $860 million in revenue and $264 million in operating profits, but still had a loss of $7 million. As of December 31, 2010, the company had long-term debt totaling $686 million. The deal could be announced as early as today, persons familiar with the matter said.

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On March 20, AT&T Inc. announced acquisition of T-Mobile USA from Deutsche Telekom AG in a “cash-and-stock deal valued at $39 billion.” The deal would make AT&T the largest cellphone company in the U.S., with over 130 million users.

Despite the regulatory risks AT&T faces, the deal’s announcement has both stocks on the move, both being up mid-day Monday.

The jury is still out as to what consequences the customer will face as results of the deal. It’s safe to assume that subscribers to both companies can expect to see service improvements based on expanded coverage areas.

However, T-Mobile is currently leading the way in low cost minutes and data plans. The move is likely to ease pressure on ATT&T from these low cost plans, leading to more expensive services. Furthermore, it is likely that U.S. customers will see the diversity of handsets decrease.

“We know the results of arrangements like this – higher prices, fewer choices, less innovation,” said public interest group Public Knowledge’s president, Gigi Sohn. The group went on to note that eradicating one of the four national phone carriers is “unthinkable.”

For now, news of the acquisition doesn’t mean a thing for customers on either side. The long regulatory process is expected to hold up the close of the deal for at least12 months. It is expected to close, however. And when it does, one of the largest cell providers in the world will be no more.

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