Cisco to call Skype for a serious business deal

Published Date
01 - Sep - 2010
| Last Updated
01 - Sep - 2010
 
Cisco to call Skype for a serious business deal

It hasn't even been a week since Googleannounced their new calling feature from Gmail, and now Skype, a company providing similar VoIP services for years, is in the headlines. Cisco systems are showing interests in buying Skype.

Skype is hoping for a valuation of about $5 billion with its IPO; Techcrunch claims to have found this piece of information via a very reliable source but were not able to confirm it. It means this is the minimum price that Cisco needs to offer to make the offer attractive. Cisco is already a big player in the VoIP services market and an investment as large as $5 billion is not out of reach for them. In 2005, Cisco had spent $6.5 billion on cable set-top box maker Scientific Atlanta.

Whether this Skype-purchase is intended to expand Cisco products and services and set it apart from other VoIP competitors, or to become a venture that will strengthen Cisco's strategic value as an acquisition target itself, remains to be seen.