Will Cisco Buy Skype?

Updated: January 07, 2011

Networking giant Cisco Systems has reportedly made a $5 billion offer to buy the Internet telephony company Skype. This is according to TechCrunch, a leading Silicon Valley blog. If this deal does happen Skype's planned initial public offering will gete axed and the market for video communications will surely be altered. Many blogs have rumored that Google considered making a bid to aquire Skype but legal antitrust fears stopped them. Just last week Google added a free phone-calling service to Gmail, putting them in direct competition with Skype.

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