Blog Post

Microsoft Buys Out VOIP Company Teleo, For MSN Messenger

Microsoft has bought out a small San Francisco-based VOIP start-up called Teleo, as part of a move to expand the capabilities of MSN Messenger. Terms of the deal were not disclosed. (The talks were reported by Om first)

A key part of Teleo’s technology is focused on making calls from a computer to an ordinary telephone, a feature that company executives said would start finding its way into MSN Messenger before the end of 2005. (While on this, read this about the upcoming version of MSN IM: “MSN Messenger 8.0 feature list leaks to web“)

Release: Members of the Teleo executive team will continue to work closely with MSN following the acquisition, and a number of Teleo product developers are expected to join the MSN ranks.

WSJ: Under that plan, a user of MSN’s search feature could click on the phone number of a search result — for example, a pizza parlor — and place a call to the business over the Internet

Independent: Teleo was founded in 2003 by Peter Sisson, who founded during the internet boom.