Wednesday, June 1, 2011

Facebook and Google Silently Battle Each Other for Striking a Deal of Buying Skype

Image representing Skype as depicted in CrunchBaseImage via CrunchBase

Facebook and Google have very frequently come across in competition with each other on considerate occasions. According to our sources, another such event has event has arrived, as both the internet giants hunt for Skype acquisition. It was also reported by Reuters that both Facebook and Google are silently competing each other in their attempts to secure a deal for Skype. This little war has begun since the web video-conference which fir gave the public announcement that the company will be available for sale, which was scheduled in the first half of 2011, but ended up being delayed till the end of this year.
Reuters has also mentioned that the C.E.O. of Facebook, Mark Zuckerberg, has been personally interested and is on-going with company officials having "internal discussions" for their move to buy Skype. On the other hand, some sources also indicated that Facebook might also attempt to convince having a business deal with Skype. Same was the case with Google, which is also rumored to be trying very hard in order to work out terms for a collaborative operation of the company.
Skype is actually owned by an investor group, under Silver Lake, who also holds the companies including eBay, Joltid Limited. Skype brings along with itself a large number of international users and a whole VoIP telephony infrastructure. This could easily be positioned strategically very well in Facebook or Google. According to the principal analyst of Sterling Market Intelligence, Greg Sterling, he said that "There's an extremely good fit with Facebook, and it could provide assets the company doesn't already have, as well as a couple of potential new revenue streams." He further added that the "The issue would be the acquisition price," elaborating his point he went on stating "But it's not inconceivable that Skype could work with both in a joint-venture capacity. But given the rivalry between Google and Facebook, I would be skeptical that would happen."
Skype was founded way back in 2003, and soon acquired by eBay after two years, in the early days of eBay for a large amount of $2.6 billion. This particular deal was aimed to gain more profit for eBay's global marketplace and benefit from its payments platform, however it did not work out as well as expected. After a long run with the company, eBay announced in April 2009 that it will be selling of Skype declaring that the initial public offering will take place in the first half of 2010. eBay had almost spent the last whole year considering if any way Skype was suiting its potential but it after all decided that letting go was the best choice.

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