Blog Post

Google to Buy Global IP Solutions, Looking to Add Video Chat to Android?

Google (s GOOG) has agreed to pay $68.2 million in cash to buy Global IP Solutions (s GIPS), which makes technology to deliver voice and video over IP. The deal will enable the search giant to boost call and video quality on various services, and may see it offer video chat through Android mobile phones and other devices.

GIPS offers technology for high-quality, real-time audio and video streaming via IP, which it licenses to companies like AOL (s AOL), Nortel, Samsung and Yahoo (s YHOO) for their voice and video chat offerings. But as paidContent points out, GIPS also recently rolled out what it claims was the first product enabling developers to add video chat to Android devices. With such technology in hand, Google could accelerate plans to offer such services on its own, or make the technology part of its own developer toolset.

Google will pay 13 Norwegian krone ($2.12) in cash per share, or NOK 421 million ($68.2 million). The offer represents a premium of 142 percent over GIPS’ closing price on January 11, the day that GIPS said it had a possible strategic buyer, and a 27.5 percent premium over its share price on May 14, the last trading day before Google made its bid.

The deal remains subject to certain closing conditions, including approval by 90 percent of GIPS shareholders. But based on a recommendation of the GIPS board, Google says it has already gotten commitments from shareholders the represent about half of all outstanding shares, including Kistefos Venture Capital AS and Kistefos Venture Capital II DA.

Related content on GigaOM Pro: TV Apps: From Novelty to Mainstream (subscription required)

3 Responses to “Google to Buy Global IP Solutions, Looking to Add Video Chat to Android?”

  1. I seem to recall that GIPS’s tech is what’s behind GMail Chat’s video calling functionality. So they aren’t exactly new to this whole Google thing.

    On the upside, I’ve been impressed with the quality of Google Video Chat, even over crappy connections (parents are on 384k up DSL, were on 256-512k up wireless with horrible lag, and the service still worked…better than Skype). I think this is a really good thing for the future of video chat, wherever that might be. :-)

    FWIW though, Qik apparently is doing video calling on the HTC Evo 4G, so while GIPS might be the first provider to offer a video-on-Android dev kit, they aren’t the only ones (or is Qik licensing their tech? Probably not…)