Internet

Facebook, Google mull Skype tie-ups - report

Thursday 5 May 2011 | 10:23 CET | News
Facebook and Google are separately considering a tie-up with Skype after the company delayed its initial public offering, two sources with direct knowledge of the discussions told Reuters. Facebook Chief Executive Mark Zuckerberg has been involved in internal discussions about buying Skype, according to one of the sources. Another source said Facebook had reached out to the company about forming a joint venture. Google has also held early talks for a joint venture with Skype, the second source said. A Skype deal could be valued at USD 3-4 billion, the first source said. Skype's IPO is expected to raise about USD 1 billion, several other sources said. The discussions are in early stages, and it is not clear which option the companies favor, the first two sources said. Although an IPO is still in the cards for the second half of 2011, Skype remains in strategic discussions with other companies, two of the sources said.

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