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Facebook or Google may buy Skype

by Rosalie Marshall

05 May 2011

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Skype could soon become a Google entity or part of Facebook, according to reports.

Google may form a joint venture with the VoIP firm, while Facebook has taken part in discussions about buying Skype, Reuters said citing sources with direct knowledge of the discussions.

Skype declined to comment on the reports.

Gartner analyst Whit Andrews said that he had not heard anything about a Skype tie-up with Facebook or Google, but that both deals would make sense from a business standpoint. 

“Of course, Facebook and Google will have considered the possibility. But key to whether they will make an offer is the number Skype is pitching itself at," he said.

“Skype is an extremely strong brand name with a magnetic influence. Everyone who joins Skype tends to bring people with them." 

Andrews suggested that the only reason Facebook or Google might hesitate in acquiring Skype is if they consider it cheaper or easier to build a similar VoIP product themselves.

However, he added that Skype is likely to have patents that make certain aspects of its functionality inaccessible to competitors.  

Andrews added that the purchase of Skype by Facebook or Google would be two completely different scenarios.

Google would be likely to keep Skype as a separate brand, like it has with YouTube, but may face anti-trust issues in purchasing the firm because of its Google Voice products.

The cost of getting the deal through the approval of US regulators could dampen any decision by Google and Skype to merge.

Meanwhile, if Facebook buys Skype, one obvious move would be to integrate the product with the social network to give users access to voice and video chat.

EBay sold Skype in late 2009 for $1.9bn to an investor group led by Silver Lake, including Joltid Limited, the Canada Pension Plan Investment Board and Andreessen Horowitz.

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