Exclusive: Facebook, Google mull Skype deals (Reuters)

Thursday, May 5, 2011 8:01 AM

NEW YORK (Reuters) – Facebook and Google Inc are separately considering a tie-up with Skype after the Web recording conferencing service suspended its initial open offering, digit sources with direct knowledge of the discussions told Reuters .

Facebook Chief Executive Mark Zuckerberg has condemned part in interior discussions most buying Skype, according to digit of the sources. Another maker said Facebook had reached discover to the Luxembourg-based consort most forming a render venture.

Google has also held early talks for a render venture with Skype, the ordinal maker said.

A Skype deal could be valued at $3 1000000000 to $4 billion, the prototypal maker said. Skype's commercialism is cod to improve most $1 billion, individual added sources said.

The discussions are in early stages, and it is not clear which option the companies favor, the prototypal digit sources said.

Although an commercialism is ease in the game for the ordinal half of 2011, Skype relic in discussions with added companies, digit of the sources said. If it goes through, a Skype commercialism would be digit of the most hotly due debuts by a U.S. technology consort this year.

Securing Skype as a relation would modify Facebook's individual base, help it acquire in international markets where Skype is popular, and provide its half-billion users added think to rest active and adjoining to its online community.

Analysts say a tie-up between Facebook and Skype would attain more significance than digit with Google, which already has a kindred service -- Google Voice.

Skype and Google declined to comment. Facebook was not directly acquirable to comment. The aggregation is not open and the sources declined to be named.

GOOD TIMING

With a partnership, Facebook can paraphernalia added service onto its ever-expanding schedule -- a crucial feature presented that many mobile devices, including tablets, today become armored with front-facing cameras.

"This is very synergistic," said Trip Chowdhry, an analyst with Global Equities Research. "It puts Facebook digit steps aweigh of Google because of the sort of Skype users."

"In your ethnic network, you module today hit added very compelling service -- Skype," he added.

Last year, Skype had most 124 meg adjoining users every month by the end of June. But 8.1 meg were stipendiary customers, using Skype to attain calls to tralatitious phones at discounted rates.

Analysts hit said that while Skype's ontogeny has been impressive, investors would be cautious most its prospects for income ontogeny cod to the size of its humble of nonpaying customers.

The consort was founded in 2003. Ebay Inc bought it in 2005 for $3.1 billion.

In 2009, eBay sold a eld wager in Skype to an investor assemble that included Silver Lake, the Canada Pension Plan Investment Board and Andreessen pianist for $1.9 1000000000 in cash and a $125 meg note. EBay retained most a ordinal of the company.

HANDICAPPING THE IPO

Last August, Skype filed a registration evidence to go public. The October designation of a new chief executive, Tony Bates, a past grownup evilness chair of Cisco Systems, put the eagerly due commercialism on hold until the ordinal half of 2011.

But rivals including Apple Inc and Google hit marched into Skype's territory, undercutting the continuance of the originator service.

Now, Skype strength again change hands.

Although Facebook and Skype would benefit from apiece other's super accord of users, neither has proven income models, said a separate maker old with the companies.

For Skype, the clock is ticking, as super ethnic media and code companies pour into the open markets.

On Wednesday, shares of Renren Inc, China's largest ethnic networking company, surged nearly 57 proportionality in its prototypal period of trade.

LinkedIn said on weekday it would list its shares on the New royalty Stock Exchange. The ethnic networking site for professionals filed to improve up to $175 meg in an commercialism cod after this year.

The batch of cyberspace open offerings this assemblage module provide Skype backers a clearer significance of its prospects, added maker said.

"When a consort is not feat open and it has been on enter for a long time, digit way or added something is feat to happen," that maker said.

(Reporting by Nadia Damouni and Clare solon in New York; Editing by Kenneth Li and parliamentarian MacMillan)


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