Cisco seeking to acquire Skype: TechCrunch

Aug 30, 2010
The Cisco Systems logo stands in front of the company's headquarters in San Jose, California. The US networking giant has made an offer to acquire Internet communications firm Skype, technology blog TechCrunch said Monday.

US networking giant Cisco has made an offer to acquire Internet communications firm Skype, technology blog TechCrunch said Monday.

TechCrunch, citing what it described as "one of our more reliable sources," said the San Jose, California-based Cisco is seeking to acquire before the Internet telephony company makes an or IPO.

"Skype insiders are hoping for an out of the gate valuation of five billion dollars or so, we've heard," TechCrunch said. "Presumably Cisco would have to be bidding in that range to make it interesting.

" was also rumored to be sniffing around Skype," TechCrunch said, "but antitrust concerns may have persuaded them not to make an actual offer."

Luxembourg-based Skype announced plans in early August to list on the NASDAQ stock exchange.

Online auction giant late last year sold a majority stake in Skype for some two billion dollars to a group of investors that included the two founders of the company. The deal valued Skype at 2.75 billion dollars.

Skype, which was founded in 2003, allows users to have online phone, video and text conversations.

Skype bypasses the standard telephone network by channeling voice and video calls over the Internet. It allows users to call others free of charge and to connect with land lines or mobile devices at low rates.

Cisco is a leader in networking equipment but the company has been on a buying spree recentloy and has expanded into online video-conferencing, Internet telephony, software services and tablet computers.

Last year, Cisco bought Pure Digital Technologies, maker of the popular Flip digital video recorder.

shares were down 0.48 percent at 20.71 dollars in early trading in New York.

Explore further: WellPoint 2Q tops Wall Street expectations

add to favorites email to friend print save as pdf

Related Stories

Skype founders looking to buy back company

Apr 11, 2009

The two founders of Skype are seeking to buy back the hugely popular Internet telephone service that they sold to online auction giant eBay in 2005, according to US media reports.

Skype comes to iPhones on Tuesday

Mar 30, 2009

Skype has confirmed that a free software application enabling iPhone owners to use its Internet telephone service will be available in Apple's online App Store beginning Tuesday.

Recommended for you

Why let your sales force influence product prices?

16 hours ago

From the outside, you might not notice the ongoing tension within many large businesses: the battle between salespeople, on the one hand, and marketers and product managers, on the other. Because the salespeople ...

User comments : 0