Cisco has made an offer to acquire Skype before they complete their IPO process, says one of our more reliable sources. We have not been able to confirm this rumor one way or another via other sources, which isn’t surprising. A company in lock down during the IPO process is usually even more tight lipped than normal.
But if true this would be one very big acquisition. Skype insiders are hoping for an out of the gate valuation of $5 billion or so, we’ve heard. Presumably Cisco would have to bidding in that range to make it interesting.
Google was also rumored to be sniffing around Skype, but antitrust concerns may have persuaded them not to make an actual offer.
More as this develops.
Skype is a software application that allows users to make voice and video calls and chats over the Internet. Calls to other users within the Skype service are free, while calls to both traditional landline telephones and mobile phones can be made for a fee using a debit-based user account system. Skype was founded by Niklas Zennstrom and Janus Friis who were also the founders of the file sharing application Kazaa. Skype has also become popular for its additional...
Cisco designs and sells hardware, software, networking, and communications technology services. Products are distributed under five brands, namely Cisco, Linksys, WebEx, IronPort, and Scientific Atlanta. Cisco was founded in 1984 by a small group of computer scientists from Stanford University. Since the company’s inception, Cisco engineers have been leaders in the development of Internet Protocol (IP)-based networking technologies. Cisco name is based on its origins starting up in San Francisco.