Facebook, Google Rumoured To Partner With Skype

Facebook and Google are competing for a tie-up with VoIP giant Skype, rumours have revealed

Facebook and Google are reportedly contemplating separate tie-ups with Internet calling giant Skype, a move that could lead to a radical shake-up of the online communications scene.

According to Reuters, both Google and Facebook have been in talks with Skype about forming a joint venture. However, one of its sources “with direct knowledge” of the situation disclosed that Facebook CEO Mark Zuckerberg has also been holding “internal discussions” about acquiring the Luxembourg-based company.

If that is the case, the buyout deal could be worth $3-4 billion (around £2.4 billion), it has been reported – which is substantially higher than Skype’s delayed Initial Public Offering (IPO), estimated at around $1 billion (£609 billion).

Skype going public

Created in 2003 by Swedish entrepreneur Niklas Zennström and the Dane Janus Friis, Skype has become a leading VoIP service provider, with 663 million registered users worldwide at the end of last year.

In August last year, Skype expressed its intention to go public by filing a registration statement. However, the IPO was put on hold by Tony Bates, a new CEO appointed in October, who has postponed the process until the second half of 2011.

Meanwhile, industry analysts expressed their support for a link-up between the dominant web telephony platform and the largest social networking site.

According to Augie Ray from Forrester Research, Facebook has become a significant communication means for many people. However, its chat application is not so efficient.

“This is a great next step for Facebook,” said Ray. “Skype will give Facebook users the chance to make true face-to-face connections.”

Skype was previously owned by online shopping website eBay, before the Internet telephony unit was sold to investers including Marc Andreessen in 2009.

“Skype is a strong standalone business, but it does not have synergies with our commerce and online payments businesses,” said eBay chief executive John Donahoe at the time.