my colleague tom hudson will be along later in the program. microsoft is betting big on skype, making its largest acquisition ever. the software giant announced today it's paying $8.5 billion in cash for the world's most popular web-calling service. microsoft outbid rivals google and facebook, reportedly more than doubling their offers. still, even with skype's millions of users, investors are skeptical of the purchase. suzanne pratt takes a look at why microsoft's big bet isn't getting rave reviews. >> reporter: this is 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 s

my colleague tom hudson will be along later in the program. a verdict today in the largest probe of insider trading at a hedge fund in u-s history: billionaire investor raj rajaratnam was found guilty of all 14 counts. a jury convicted him on five counts of conspiracy to commit securities fraud and nine counts of securities fraud. the conviction, after an eight- week trial, is a huge win for the government's efforts to punish insider trading on wall street. we'll get analysis from a legal expert in just a moment, but first, erika miller was at the courthouse and has details on today's verdict. >> reporter: once a high-flying wall street investor, raj rajartnam is now a convicted felon. the founder of the galleon group hedge fund was convicted in a scheme that netted him $64 million in illegal profits. outside the courthouse, his lawyer john dowd vowed to appeal. "we will see you in the second circuit." prosecutors did not address the media circus after the verdict, but they did release a statement, saying "the message today is clear-- there ar

i'm tom hudson, have a great night, susie. >> susan: thank you tom. thanks for watching everyone, hope to see all of you again tomorrow night. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org >> more information about investing is available in "nightly business report's" video "how wall street works". to order this dvd, call 1-800- play-pbs or visit online at shoppbs.org. >> be more. pbs.

this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: this program is made possible by contributions to your pbs station from viewers like you. captioning sponsored by wpbt >> susie: good evening everyone. the head of the international monetary fund is in a u.s. jail tonight. dominque strauss-kahn was arraigned in new york today on charges of sexual assault and attempted rape. tom, these allegations add uncertainty to the debt crisis in europe. >> tom: susie, strauss-kahn is widely respected as an authority on europe's economic issues. his legal trouble comes at a critical time, as greece and other troubled countries are negotiating this week for financial help. >> susie: today eurozone nations approved a big bailout package for portugal-- $111 billion. what do all these developments mean for american investors? suzanne pratt reports. >> reporter: i.m.f. director dominique strauss-kahn was supposed to be in brussels today tackling europe's newest money troubles. instead he sits in a manhatta

i'm tom hudson. have a good weekend everyone. you, too, susie. >> susie: good night tom. we hope to see all of you again next week. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org

i'm tom hudson. have a good weekend everyone. you, too, susie. >> susie: good night tom. we hope to see all of you again next week. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org vo:geico, committed to providing service to its auto insurance customers for over 70 years. more information on auto insurance at geico.com or 1-800-947-auto any time of the day or night.

this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: this program is made possible by contributions to your pbs captioning sponsored by wpbt >> tom: good evening and thanks for joining us. susie gharib is off tonight. i'm joined by my colleague suzanne pratt. wall street welcomes a new chapter in barnes and noble's search for a buyer. since august the bookstore has been looking for a buyer and it found one in liberty media. suzanne, the buyout offer sent barnes and noble shares up 30%. >> suzanne: tom, now everyone wants to know what liberty's c.e.o. john malone sees in the deal. many analysts think he's focused on the nook-- barnes and noble's e-book reader. a new version of the nook is due out next week. >> tom: liberty media has been known for seemingly unconventional deals in the past. it owns the atlanta braves, major league baseball team; a technology company that can locate mobile phone signals for security purposes, called true position but the billion-dollar offer to buy a book sto

this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: this program is made possible by contributions to your pbs station from viewers like you. captioning sponsored by wpbt >> tom: good evening and thanks for joining us. fresh worries about the housing market today. the spring selling season usually is real estate's busiest time of the year, but new data suggests it may not be off to a strong start. >> susie: tom, new-home construction data came in surprisingly weak. housing starts plunged in april by more than 10%, a sharp contrast to march, when they rose by double digits. >> tom: with this volatility, buyers and sellers want to know, is the market getting better or worse? erika miller reports. >> reporter: if you want to take the pulse of the real estate market, pamela liebman is a good person to ask. she's the c.e.o. of the corcoran group, one of the nation's largest real estate brokers. liebman says low prices are luring in buyers, especially at the high end. >> they feel like the marke

this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: this program is made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt >> susie: good evening, everyone. general motors zoomed back to the top sales spot last month on strong sales of small cars like its chevy cruze. >> tom: susie, g-m and ford had a great month; they outsold many of their japanese rivals. that's the latest indication of the supply disruptions stemming from japan's earthquake and tsunami. sales at general motors rose 27% on its compact cars and crossovers, chrysler jumped 22%, while ford saw a 16% increase. toyota sales were only up a single percent as the auto maker experienced supply shortages. >> susie: as diane eastabrook reports, the shift to more fuel- efficient cars, combined with a recovering economy, is good news for u.s. auto makers. >> reporter: it's taken a few years, but u.s. consumers are finally in a car-buying mood again. guggenheim securities' joh

good night everyone, and good night to you too, tom. >> tom: good night susie. i'm tom hudson. good night everybody. we hope to see all of you again tomorrow night. "nightly business report" is made possible by:

this is "nightly business report" with susie gharib and tom hudson. this program is made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt >> tom: good evening and thanks for joining us. stocks and commodity prices were down today, and susie, gold and silver also dropped sharply. >> susie: tom, the recent sell- off in precious metals accelerated today. silver prices plunged 7.5% to just under $40 an ounce. gold fell $25 to $1,515. one catalyst? word that george soros' big hedge fund is cutting back its position in precious metals. >> tom: and another factor in the selling? maybe new margin requirements for silver from the c.m.e. group. the commodities exchange has raised trading costs three times in the past week, making it more expensive for investors. and speculators. suzanne pratt reports on whether the outlook for precious metals is tarnished. >> reporter: listen closely and perhaps you can hear the silver bubble popping. having doubled its price in six months, the white metal is down 19%

this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: this program is made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt >> tom: good evening and thanks for joining us. big oil and big tax breaks made for a volatile combination on capitol hill today, susie. >> susie: tom, c.e.o.s from the five biggest oil companies were there, defending their big profits and tax rates. the top execs from exxon mobil, shell, b.p., chevron and conoco phillips all came before a congressional committee. >> tom: those oil companies went on the defensive, thanks to a democratic effort to repeal their tax rates. republican senators were quick to point out that changing the tax rates of big oil companies wouldn't help the country's debt problem. and as darren gersh reports, the hearing was contentious and, mostly, political theater. >> reporter: the oil executives took an aggressive stance, vigorously defending what they pay in taxes, saying the tax brea

this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: this program is made possible by contributions to your pbs station from viewers like you. captioning sponsored by wpbt >> tom: good evening and thanks for joining us. my colleague susie gharib will be along later in the program. it may not have been the reaction many investors expected after the death of the world's most wanted terrorist. many americans did cheer the death of osama bid laden, including this celebration at ground zero in new york-- the site of his most deadly attack. his confirmed killing in a u.s. attack initially saw stocks rally and energy prices sink. but the demise of one threat also reminds investors and business of the ever-present risk of terrorism. erika miller reports. >> usa, usa. >> reporter: at ground sdwlero today there was a mix of emotions. some people re-- rejoiced. >> we celebrating death which we hardly ever do. we hardly ever celebrate death but we are celebrating the death of one really bad individual.