Cisco Makes Bid to Acquire Skype


Cisco reportedly made an offer to acquire Skype in an effort to nab the telephony company before its IPO, according to a source who spoke with the technology blog, TechCrunch.

The source said that Cisco may be looking to acquire the company with an offer in the ballpark of $5 billion, though TechCrunch has been unable to confirm the report with an official statement.

The secrecy is apropos of a company that is on the verge of an IPO, a move that usually requires high degrees of confidentiality—especially in the stages right before going public.

Some analysts say that $5 billion may be a little much, especially since Google recently released its own version of VoIP powered through Gmail. These analysts point out that the VoIp atmosphere is heating up, so the increased competition may cause a devaluation of Skype. Also, Ebay recently sold its 70 percent share of Skype and valued the company at $2.75 billion.

As of the time of this writing, neither Skype or Cisco have issued any statements concerning the matter, though some analysts say it’s likely that Skype will accept the offer so they can remain competitive with Google.

More updates as the story unfolds.