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Cisco Possibly Buying Skype

by Jerry1973 on September 2, 2010

As Skype makes plans to go public, Cisco may first make a play to purchase the popular voice, chat, and video company. Over the past weekend, TechCrunch reported that Cisco presented an offer to Skype before the IPO process was completed, according to the blog’s “reliable sources.” This potentially multibillion dollar transaction was not confirmed by Cisco.

TechCrunch stated that through its IPO, Skype plans to raise $5 billion. Skype was not available for comment regarding the rumored offer by Cisco and Cisco spokespeople declined to say anything when they were contacted. If the rumor is true, it would represent the ideal way for Cisco to branch into the consumer market as well as further establish itself in the unified communications industry.

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Cisco currently provides the business sector with unified communications and IP telephony systems. The purchase of Skype would supplement this with consumer-friendly free and paid voice, chat, and video capabilities. If this technology were integrated with an Internet-accessible device like the pocket video camera Flip, the possibilities expand. Cisco could provide the business and consumer markets with a handheld video, voice, and data device.

According to TechCrunch, Google also possibly has interest in Skype. However, antitrust issues may prevent the search engine provider from placing a bid. Just last week, Google added the ability for U.S.-based Gmail users to make telephone calls. For the remainder of 2010, domestic calls are free and international calls begin at two cents per minute.

As the unified communications arena changes, more players are likely to enter the market. Google Voice presents a non-video alternative to Skype calls. If Cisco acquires Skype, the company’s technology could be expanded from the business to the consumer marketplace. With all of these potential developments, the era of the landline telephone seems to be quickly becoming ancient history.