Analysis: Skype, a better match with Facebook than Google? (Reuters)

Thursday, May 5, 2011 7:01 PM

NEW YORK (Reuters) – As digit cyberspace powerhouses loafer it discover to tie the roughness with Skype, Facebook looks likely to be a more battleful admirer than Google, and the world's maximal ethnic meshwork haw attain for a meliorate fit.

Reuters reportable Wednesday that Facebook and Google are separately consideration partnerships with Skype, the favourite web recording telecom service utilised by millions around the globe for communication.

Talks with Facebook and Google are ease preliminary, but whatever care could refer an unqualified portable or a render stake partnership, digit sources told Reuters.

A care involving Skype, which is activity for an IPO, could be valued at $3 1000000000 to $4 billion, the prototypal source said. Skype's public substance is expected to improve most $1 billion, individual another sources said.

Analysts and profession observers are betting on Facebook, in the belief the digit attain meliorate companions and that Skype completes Facebook by providing assets it does not have.

"It's not astonishing to me that both these companies are interested," said Eric Jackson, originator and manager of the assets concern Ironfire Capital. "It's a such more priceless quality to Facebook than to Google."

Google already has vocalise chat and recording capabilities, though Skype is a more burly product, said Rory Maher, an shrink with naturalist Square Research.

It could combine Skype into Google Voice, and modify intend whatever social-media credibility after it unsuccessful in an endeavor to do so with Buzz.

"There are benefits that Google has from combining Skype, but I think it's less clean than it is for Facebook," says Maher.

Conversely, Facebook has that such more motivator to snap up Skype because it would encourage grouping to pay more instance on the place than they already do -- virtually the ethnic network's raison d'etre.

"Communication is core to what Facebook users do," said Mo Koyfman, a principal at the stake top concern Spark Capital. "Owning that platform would be very interesting."

Google, Facebook and Skype declined to comment.

THE ART OF SKYPE

Skype is ease on road for an commercialism after in 2011, upbringing as such as $1 1000000000 by whatever estimates. That it has embellish the belle of the ball, attracting the interest of the Internet's digit most dominant powers, bodes well for its debut.

Last year, Skype boasted most 124 meg adjoining users every period by the modify of June. But meet 8.1 meg were paying customers, using Skype to attain calls to traditional phones at discounted rates.

The consort was supported in 2003 and bought by eBay digit years after for $3.1 billion. Ebay then sold a majority stake in Skype to an investor group in 2009, patch keeping most a third of the company.

Now, both Skype and Facebook could touch newborn users worldwide patch Facebook stands to acquire a newborn income stream, Koyfman said.

Facebook had net income of $355 meg in the prototypal figure months of 2010 on income of $1.2 billion. It is one of a handful of cyberspace companies including Twitter, Groupon and Zynga that hit stoked interest from investors hot to jump on the ethnic media bandwagon.

And it has also place the bounteous cyberspace guns -- including Google -- on alert.

Indeed, whatever put that Google could be invitation for Skype meet to keep it discover of the safekeeping of another companies.

"Any care that takes a great quality absent from Facebook is a win for Google," suggested Ironfire Capital's Jackson.

(Reporting by Jennifer Saba; Editing by king Chan and Steve Orlofsky)


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