Skype, Yahoo in talks?


It is too early to tell, what is going on, but there seems to be rumors floating that Skype and Yahoo are in close contact, and perhaps cooking up a commercial partnership. The reports are based on a post on Jean-Michel’s blog. It might be too soon for Skype to be cashing out, and I am not sure if Yahoo can justify the big ticket valuation that would be slapped on Skype. There maybe a revenue share deal in the offering! That would make my recent post on Skype, more relevant.

I have a feeling that two companies could be working on ways to get together and make their individual IM/VoIP clients work with each other. Some sources say that Yahoo’s Messenger team has been hyperactive, and is trying to find creative opportunities, so lets not rule out a possibility of an outright purchase. Still given the 41 million downloads, Skype would be a great acqusition for Yahoo, because it could add some significant heft to the Yahoo! Messenger platform. Yahoo has been spending significant amounts of money on turning this into a voice client as well.

The big problem to this deal would be cozy relationship Yahoo enjoys with the baby bells. Skype is public enemy #1 in those circles, and it could mean a big risk for Yahoo which is building itself as media giant of the 21st century. Stay tuned – I am on the trail right now!


Philip Wilkinson

Well – Skype finally sold to Ebay! A good move on their part as the big players are now getting in on the act. For ebay – pocket change that gives them a large user base and a whole new way to acquire community interaction!


With Skype’s current status as 800-lb gorilla in the “Industry”, many pundits called this a direct affront to Skype’s business. It may be, but we here at thing the analysis of the deal and its implications rest first in deciphering which “Industry” we are talking about.

Anish Mohanty

Yahoo and acquisition?
I am not convinced about Yahoo acquiring Skype. It is VERY unlikely. They may settle at some “technical collabration” and “licensing” of technology.

Yahoo doesn’t have much acquisition plans in Europe at the moment. I have some friends in Yahoo headquarters and they have indicated to me that yahoo is more focused on emerging markets (China, India) for big ticket and strategic acquisitions.

Yahoo is smart! and they’re not gonna buy companies just for the heck of it. Unlike google which is just a “show case” yahoo is a real business. Google is acquiring companies just to justify their $80Billion valuation. Yahoo acquires company to add value to their existing business-not valuation.

A India and china strategy for yahoo is top agenda…when did Yahoo acquire a company last? Like in Nov. 2004?

Stop spreading these rumors which have no foundation.
Sorry to disappoint the speculators out there!



A unified communication client with availibility status for various means of communication would be nice, sort of like caller ID on crack.

If you had a big zit and a broken finger you could turn off your video conferencing and IM availability but leave your Skypehoo! availability on. What can Skype add that Yahoo doesn’t already posess?


Speaking of buyouts, what is taking Google so long to take out Knoppix? Seems like a perfect fit.

Om Malik


i could not agree more. for the longest time i have been saying that IM people should be getting their act together on VoIP, and they did not. I mean it is only fair that they should pay through their nose for a certain amount of laziness and not paying attention to what’s going around them.

ashwin navin

i bet google wants skype more than yahoo since they want a presence in IM (of course the preeminent play in VoIP would be nice for goog too!).. my hunch, skype is too pricey for either of them at this point to acquire. skype and yahoo will do some kind of interop deal and skype will ride up yahoo’s larger footprint of users. the amazing thing to me is that skype even exists.. aol/msn/yhoo have been asleep at the wheel for VoIP.


Hasn’t Yahoo bought a license for Xten technology and put a person on Xten’s advisory board?

Wouldn’t this be a blow to Xten to have Yahoo ditch that and go to Skype?

Skype WILL change from what it is today. The question is what will it change into.


i seem to recall posting on a few sites…

skype will sell. watch for this (or something very close)

they never had a chance…

e911 etc……


Thomas Hirsch

My guess is that Yahoo! most likely would buy DDDC (deltathree) or EGHT (8X8 or Packet8), which would give them the experience and know-how or running a commercial VoIP service. DDDC, based in Israel and with worldwide customers, probably is the more like acquisition by Yahoo! Both would be ready to go for Yahoo!, while Skype probably would need a lot of fine-tuning to work.

Niall Kennedy

I know some of the people working on VoIP for Yahoo! Messenger were just contractors and are no longer working on the product. Possibly a Yahoo! VoIP powered by Skype?


Wow…good catch Om. I always though they b2f (built to flip) for Microsoft. Yahoo seems like a good candidate though.

Comments are closed.