Facebook And Google Ready To Battle Over Skype (GOOG)

Facebook And Google Ready To Battle Over Skype (GOOG): "

Mark Zuckerberg

Skype is entertaining buyout offers from both Google and Facebook, according to a Reuters report.


Mark Zuckerberg and other Facebook execs have been considering an outright buyout or a joint venture.


The deal would make sense -- it would give Facebook an immediate way to add voice and video conferencing to the pretty lame Messages feature it introduced last year, and would prevent third parties like T-Mobile and Vivox from filling this niche. (Facebook reportedly asked T-Mobile and Vivox to suspend the Bobsled voice app a day after it launched.)


The fit for Google isn't as clear -- Google already has a voice and video chat service called Google Chat. But it might be willing to pay up just to keep Skype out of its top rival's hands.


Skype filed for an IPO last year, but in January the company reportedly delayed it until late 2011, and sources at the time said Skype might consider a buyout for $5 to $6 billion. The current report puts the price lower -- between $3 and $4 billion. A competitive bidding situation might drive prices higher, though.


Skype is pulling in lots of revenue, but profits remain elusive: in March the company revealed that it lost $6.9 million on revenue of $890 million in 2010.


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