On May 5th, Reuters uncovered a skirmish for Skype. The contenders: Facebook and Google. Considerations for the tie-up came after the web video conferencing service's CEO, Tony Bates, postponed the company's initial public offering to the latter half of 2011.
Reuter's unnamed sources said the deal could cost upwards of $4 billion, quite a jump from Skype's projected IPO of $1 billion.
In one corner, we have an ambitious social media giant with an army of faithful users who've long stopped mourning over Friendster (those who even knew of it) and many of whom are likely already Skype users.
To complicate matters, two telecommunications providers have bounded over Skype to tie with Facebook. Jajah and T-mobile began offering free voice phone calls from Facebook in May of this year, but as AllFacebook points out, Skype's user base far outreaches those of Jajah and T-mobile. If Skype teams up with Facebook, it stands to bring in its 124 million connected users (minus the 8.1 million who are calling Mom, who's refusing to get rid of the landline). Reuters points out that Facebook stands to grow in international markets and give its more than 600 million users another reason to stick around (even if the hacking is getting a little out of hand).
The Register adds that Facebook may have an edge, though. In October 2010, Skype invited Facebook's News Feed and Phonebook into its software.
In the other corner, we have a more seasoned internet Goliath, who in February of last year purchased On2 Technologies, which licenses Skype's VP7 video compression/decompression technology.
Skype took a deep breath before remarking, "There can be no assurance that disputes will not arise as to the scope of a relevant license or the terms of our use of a particular technology or that the licensed technology or other technology that we may seek to license in the future will continue to be available on commercially reasonable terms, if at all." No wonder Google is in the ring, especially since Google Voice hasn't seen much hoopla.
The bell has rung and the fight is on (maybe; none of the players cared to comment to Reuters). Most of us (including Bates himself) are just waiting for the KO.
Article by Alexis Bonari, a social media enthusiast and freelance education blogger. See her recent articles on PE scholarships and management scholarships.