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Telefonica Buys VOIP Startup Jajah For $206 Million

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Telefonica (NYSE: TEF) is buying up VOIP provider Jajah for $206 million in cash. The company — which had raised $35 million in venture capital funding — had been up for sale for more than a month now and several companies, including Microsoft (NSDQ: MSFT) and Cisco (NSDQ: CSCO) had also been said to be interested. In recent days, however, there were reports that Telefonica had beat out those two companies in the bidding.

Telefonica says that it will offer Jajah’s services to “customers wishing to extend their communication experience” — beginning in Europe, where the carrier operates under the name O2. It will keep the Jajah brand. Jajah, which claims 25 million customers, is the latest VOIP provider to be bought up; last month Google purchased Gizmo5 for a reported $30 million. Here’s the release.