Reports: Microsoft to Acquire Tellme

Microsoft is close to a deal with Tellme Networks, a company that specializes in voice recognition technology. An acquisition would likely bring voice recognition to several of Microsoft's Web-based products.

It is said the deal could be worth as much as $800 million, and would allow Microsoft to push into an area that is widely untouched by its rivals. Other projects like Office or Windows Mobile could also benefit by the acquisition.

Tellme is working on products for the cell phone, which would allow the user to say what they want and have it sent to their phone, or text message the service and receive similar results.

Jeff Raikes, president of Microsoft's business division, has recently talked up the merging of data and voice. Although not hinting at any buyout, Raikes said programs like Outlook would gain new voice functionality in the coming months.

It is likely that Tellme would be folded into Raikes' division, according to people familiar with the matter.

An announcement on the deal would likely come later in the week, news sources report. Neither Tellme nor Microsoft would confirm that talks were underway. News of a possible deal was first reported by CNET News.com and the Wall Street Journal.