Skype and Facebook Discuss Alliance

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Internet phone provider Skype and Facebook Inc are in discussions to join forces on communications services, The Wall Street Journal said.

As part of a partnership to be announced in the next few weeks, Facebook users will be able to sign into Skype using Facebook Connect accounts. Once signed in, they can video chat, voice chat and send text messages to Facebook friends from inside Skype.

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The new functions will be part of Skype 5.0, due to be released in the next few weeks, The Wall Street Journal said without naming its sources.

The deal will likely step up pressure on Google Inc. (GOOG), which recently introduced a voice calling service into Gmail.

Skype has 560 million registered users, while Facebook has 500 million.

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