what -- you're paying microsoft. this will be hosted in microsoft's data centers? >> correct. it will be hosted in microsoft's data questions. you mentioned the i. -- the press released a host exchange online. i wonder what kind of aspects we'll be using and how that will work? >> sure. i can talk about a little bit and then microsoft can talk about their strategic -- when we signed the contract for the city, it was initially envisioned that we would have a replacement for our existing email system so this initial contract is really for email services and arkifing the services. -- archiving the services which we're paying microsoft. the benefit we see working with microsoft is that we have the option in the future to start looking at additional consolidation opportunities like share point, like instant messaging. like video conferencing and other things that we're very interested in the city that we haven't yet deployed but this creates for us the foundation, the core of the system that we could expand in the future when we get done with the email migration to provide enhanced

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 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

that's an area where microsoft has lagged. >> microsoft has certainly lagged. it's been very late to the table on this one. apple with its i-phone, google with its suite of... its line of android base phones has dominated what's known as the smart phone market. the mini-mobile computers and the tablet market. microsoft has for years actually tried to bring out a smart phone that would have the same sort of resonance with consumers that the i-phone has but can you actually name a single windows 7 that has that kind of resonance with consumers? probably not. most people can't. microsoft has been late. they're hoping with skype, a user will walk into a retail store or go online and say you know what? that windows microsoft phone has a great skype service that is only available on this particular phone. i have a particular sort of way of using skype. that might bring me in as a customer for a microsoft phone. that's one of the hopes. >> brown: this has to go through regulatory and antitrust. >> it certainly does. it has to go through either the justice department o

microsoft has a head start. microsoft's steven bridgeland is my guest this morning. plus, all kinds of great ideas never make it to the invention stage. edison nations, lewis foreman wants to help. our reporters, the bc's maggy shields and rich jaroslavski, from bloomberg this week on "press: here." >>> good morning, everyone in silicon valley wants to figure out what the next big thing will be. but perhaps no organization has more at stage in figuring that out than microsoft. microsoft made its fortunes selling the windows operating system for traditional pcs, but traditional pcs, desk tops and laptops have fallen out of favor with consumers. 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 c

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

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 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

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

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

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 is ging totay sro

now skype is being swallowed up by microsoft. it's just eight years since skype started helping people to make calls over the internet for nothing. and this is the third time it's been bought and sold. microsoft has 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 tabl

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. game 6 in detroit this evening, 5 p.m. they will drop the puck pacific time. >> keep your fingers crossed. >> get it done, sharks. >>> the duke and duchess of cambridge are on their honeymoon. >> william and catherine married last month but after the wedding the prince went back to work as a rescu

it is the biggest deal in the history of microsoft. ktvu'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

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. >> 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 place where 80 people were killed and two suicide

there were a lot of meetings between my chief security officer and the microsoft security team. 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 shar

it is official now -- computer giant microsoft has confirmed it has bought skype. it's the largest deal in the history of microsoft and is worth around 6 billion euros. that may seem like a lot to spend on what is considered a lossmaker, but microsoft is eyeing their web savvy users as a way to boost its ailing smart phone business. >> skype let people make net- based phone calls and chat t video for fleet -- for free. i popularity has spread like wire fire -- like wild fire. they have become a major player. by incorporating skype into its own business, microsoft has beaten other internet giants like facebook and google. 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 ma

. >>> microsoft scoops up skype in a blockbuster deal. some say they pay to much and others say there is a good reason why. >>> a highly closer that are sure to cause headaches for drivers and businesses. >> mostly sunny skies and warm conditions. at this hour, low clouds from the coast creeping inland. how this will impact your wednesday, coming up. bree: sis, help me create my oasis. marcy: ok, romantic garden? bree: oh, is there a castle nearby? marcy: no, but there's a charming farmhouse. bree: right next to my posh castle! i'm sensing a theme here. well, i am the queen, dear sister. >> apple does not track user's location. >> apple and google denied allegations that they store specific information. the hearing was called in the wake of claims that the mobile devices were sending information back to the company. 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 i

microsoft will pay $8.5 billion. it's the most microsoft paid for anything, ever. it's not the first time skype was sold. ebay bought it for $3 billion only to dump it after asking why did we buy skype? it was one of meg whit man's less than stellar moves. it was an issue many in the tech world raised as she ran for governor. ebay could never explain why it bought skype. it makes more sense for microsoft. you can incorporate it with x-box. microsoft and skype boards approved it. it's a huge win for the venture capitalist known for inventing the web browser. he can flip a company. microsoft is going to hold a press conference 8:00 our time in san francisco. we should know more then. >> >> skyped with my mother-in-law this weekend. thanks so much. we are waking up live in hayward this morning as the tour across the bay continues. coming up, we areshow going to you how a local community college helped establish a career and how hayward helped inspire a new movie. ♪ ♪ ♪ when you're resonsible for this much of team, you need a car you can count on. ♪ >>> this

you would think microsoft would be bigger. it's down 20 cents after announcing they are buying skype for $8.5 million. >> the queen is ahead of me technology wise. i don't have an ipad. >> she had an ipad, too. >> she's way ahead of me. laura, does laura have an ipad? >> no. >> she has beer, though. >> i don't need one. hey, thanks a lot. we don't need it. we are out and about across the bay area. bob redell is joining me live in hayward this morning. right now is when we decide where we are going to head tomorrow. >> we have the may around the bay map. we have no idea where it's going. random process, which makes us all the more exciting. we have hops and honey. i'm going to take a hop leaf, dip it in the honey and see where it sticks. laura, duck. three, two -- where is that? hold on? >> let's see. it looks like -- fremont. >> wow, how random is that? you know ha they have? niles district film museum. the art and historic farm is there, too. >> love it. that's what's so great about the bay area. laura. >> no problem. we can'

that microsoft never 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-changing. (man) register today for the... because everyone deserves a l

>>catherine: the biggest deal in microsoft's history. gabe slate shares with us how this will affect this type users. >>gabe: from this acquisition skype us will improve and be available on more platforms. microsoft wants access to skype us 170 million users. they 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 seem

in e bale for global dominance, microsoft pai billions to purase the internet giant. nd wt does it take to ha the rights toost e world cup? one man says cheing is a big partf the game. lcometo ou viewers o pbs in america and around the globe. tang t fight to conel gaafi. that is exactly what nato forces are doingfteraunchinghree urs air assaults onhe libyan cital this comes justs theattle ems be gnding to a stalemate. at the same time,he hunitaan crisis continueso gr, an manyefugs have paid withheirives. >> after e bombing, the protests these were supportersf conel gaafiutsi a plastic suery hospital inripo today. libyan officialsay the hospital was justne cvili target hit during a nato' latest bombament ty s the attack also damaged bldings concerned with the lfare of children. it w cerinlyhe heaviest atta by nato acraft in sevel weeks. nato insists it is targeting on military facilities. >> the tgetse are hting ourommand and control bunrs. againjusto make clr, nato isot rgetg individuals. it is not in our mandate. r mandate is to proct the cilian populationrom tax orr

it's the biggest deal in microsoft's 36 year history. buying skype could keep give microsoft a lot more clout as they try to bigger force in the smart phone market. >> representatives of apple and google will try to convince a congressional committee that their smart phones are not spying or stalking customers. it comes after accusations that phones were tracking their customers movements. janelle wang has more on what the companies are expected to tell congress. >> apple and google say they only record the locations of wi-fi cell towers to improve service not to stalk customers and that tracking can be turned off. they are set to testify about that technology on capitol hill today. senator al franken is holding the hearing on subcommittee on privacy and technology. it begins in just about 45 minutes from now. senator wants to more about the technology that secretly keeps track of user locations. it's growing concerns over online privacy. more and more americans own a smart phone. representatives from the federal trade commission and the

. >>> microsoft has just made its biggest deal in it's 36-year history. they've agreed to buy skype for $8.5 billion. skype has over 170 million users worldwide, and according to regulatory documents, users of skype made 207 billion minutes of voice and video calls last year. >> microsoft and skype together will bring together hundreds of millions, or as tony said, billions of consumers and empower them to communicate in new and interesting ways. >> skype will become a new business division within microsoft with skype ceo tony bates taking the 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 wa

in cash making it the biggest deal in microsoft's 36 year history. microsoft says it will combine skype's functions with its x box game console, outlook e- mail program and windows smart phones. >>> all right. checking in on the numbers. live look at the big board. the dow jones is up about 35 points. right now i'm seeing wall street is up after some strong chinese data some economic data out of china. so that could help the global economy. we'll see how technology stocks are dealing with the microsoft deal as well. it's 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

and i don't see it ending the corporations a little bit days and i want to know you know we thought microsoft i got for eight point five billion dollars something that some are skeptical as to the valuation of skype and why microsoft and 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 anything suspicious and that's why you. see the large extent especially with the launch of their connector earlier this year putting a spy device in everybody's that is literally hooked up to the internet twenty four seven three sixty five and less you pull out the cable or unplugged 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 corporations 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 holodeck experience and it's the first video game system and person to person video conferencing in the quality w

. >> can microsoft profitttttttttp >> software giant microsoft announced buying skype for 8 and half billion dollars. the ceo's of both companies announced the deal in san francisco. 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. am

>>mark: microsoft is agreeing to buy skied for 8 1/2 billion in cash. it is the biggest deal in the 36 year-old history. >>darya: is the warmest day of this year so far this see where we will top of that. >>james: we have nice side cover. the warmest day of the week, wednesday turned out friday is sunny and mild. an early checked the traffic with george. >>george: thank-you james. as we track the commute starting with a little check here, a man neat purged check, no hot spots around the bay area. a report itself has not made any early changes are activation of the metering lights. a complete check coming up. >>mark: a man is charged of making a slight disturbance. 28 year-old raji husmari. it was turned with allegedly it clamming a cockpit with his shoulder. two passengers and a flat head or will to tackle them. you're hearing for the first time the flight recordings. >> 15-61 we need party handily on a lot of rubble. the 28 year-old is the teacher. >> he has no ties with the kind it or terrorism. i do not think he knows anything about terrorism or how

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

the change in standing comes one year after apple past microsoft. analysts say microsoft may retake the number 2 spot as market prices fluctuate. >>> for the first time in two decades san francisco is hosting the huge travel expo this week and they are checking out the bay area as a destination for their clients. they also get the chance to sell themselves to travel agents. the recipients come across that they in across the globe. >> we are a wonderful alternate to san francisco. >> chinese people also want to come here to see all of the fantastic interesting places. >> starting today the highway patrol and police agencies are enforcing california's click it or ticket campaign. anybody caught unbuckled can expect to get a ticket, not a warning. the fine is $142 for first-time offenders. the penalty is $445 involving children under the age of 15 and $1000 or more on a second offense. >>> what are friends for? how friends are stepping up for a bay area teenager stricken with cancer. >>> cooler weather and maybe giving way to rein in the bay area. mete

occasion companies the constitution is written to protect us from the government not from microsoft and not from a.t.m. to but here's what i don't get that line of been so blurred read the document where the government has been able to get this information without really wanting it brought obama's entire online campaign in two thousand and eight was google with the facebook case or so there's those crony capitalism in this administration to be sure and that's highly problematic what we need is to is the government not being so big that it holds so much sway over the private sector that none of this would have this problem not exist way that the government would so much savor the private sector but it goes the other way who do you think is at the tail wag the dog or you know who's wagging the dog here the government of the of the day they don't like to go corporations doing they're going to slam with regulations barack obama has done it again and again and again when you just really quickly i want to ask you guys and just real quick we see china the united states wants to break down and

. >>> microsoft today announced their biggest deal. 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

coming up,ike kristoff's begins by, why h theompa microsoft's bigges buy why s the company purased skype? china 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 di

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 higher ground. in louisiana, where the flooding has yet to hit, the army corps of engin

in russia and i'm just wondering if that means that it's going to change and it is microsoft going to take something that isn't broken and then try to fix it in whatever their we know. technology and then just undoubtedly ruin it i hope not because i can i still can navigate windows i'm a macro and i have a hard time figuring out how to do much on windows like open microsoft word so i hope i don't match up with yeah i can see one change that my potential were there which will bring back clippy the paperclip never have been in microsoft word i love it when you start you know like oh i see you're calling your mom on mother's day can i also send an e-card for you would be great if you want to be assisted. by let me see let me do you there's no battle that's the whole contention about it is why is this valuation eight point five billion dollars is this kid much because they haven't really figured out a way to monetize user base which is the question we have with all these tech companies i mean facebook is i think it one hundred fifty every face what. they have they have those games that r

because we all know for celebs love obama i think it's jealousy you're right big news today i guess microsoft is buying skype for something like eight point five or eight point eight billion dollars and i know i was kind of curious about that i use skype 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 valu

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

coming up. >> darya: microsoft will buy skype. starting off and then traffic center with a hot spot update. this is gone from bad to worse. there is no good alternative. >> george: the alternate is jammed. this is sierra point where to write lanes are still shut down, this is in the southbound direction, we will get an update from yoli in the second book before we do look at this traffic map. 280 southbound and northbound jam here in both directions, southbound ride especially so, no northbound lanes are affected look at the back up reaching toward sfo 41 01 northbound. big delays be sure to give yourself extra half-hour-45 minutes headed toward the sfo. those drive times could stretch out by another 15 minutes and that is extra time. before we go yoli i want to show you this is the result of the incident in brisbane. back up into san francisco affecting traffic on inbound central freeway which is not quite back up to the expressway. yoli is on the scene. >> reporter: the corner ban is here so they are trying to get the body into

microsoft buying skype for $8.5 billion. 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 rotati

microsoft may be jumping into the ring. cnet's brian cooley has a sneak peek. >> plus it could change the way you email, the big makeover in store at yahoo. >> the quick check of the early numbers on the stock market, all in positive territory. coming up we'll get an update from kcbs moneywatch reporter jason brooks when we come back. ,,,,,, my diet? well yesterday i had an apple turnover. i know it's sort of my weakness. i always keep it in the house. well, that and boston crème pie, white chocolate strawberries, and mmm key lime pie. yeah, i've already lost some weight. [ female announcer ] yoplait light -- over 30 delicious flavors at about 100 calories. babe, what are you doing?! ♪ [ female announcer ] the yoplait you love, now in a 4-pack. try it today. i know you're worried about making your savings last and having enough income when you retire. that's why i'm here -- to help come up with a plan and get you on the right path. i have more than a thousand fidelity experts working with me so that i can work one-on-one

. >>> 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