On February 26 we reported that a TellMe acquisition by Microsoft was imminent. The WSJ has now reported (behind paywall) that the two companies are in merger talks, and that a deal may be signed this week. The price – “up to” $800 million.
Microsoft Corp. is in acquisition talks with Tellme Networks Inc., a closely held company that makes Web-based voice technology, and may sign a deal as early as this week to buy the concern, said people familiar with the matter.
A Microsoft agreement to buy Tellme could value the company at up to $800 million, said one person familiar with the matter.
TellMe, which operates consumer and back end automated voice recognition services, has raised $239 million in capital over four venture rounds. We gave a glowing review to a recently released TellMe mobile phone application.
Update: Om Malik has sources saying the deal may be north of $800 m.