Could Cisco Flip for Skype?
3:25 PM -- There's a rumor today, via TechCrunch, that Cisco Systems Inc. (Nasdaq: CSCO) wants to acquire Skype. It's a situation like Cerent's, in that it would cost Cisco billions to convince its target not to go public.
(For the kids: Cerent was an optical equipment company back when "optical" meant "instant IPO.")
So, do you believe in Cisco/Skype? Skype would certainly fit Cisco's growing consumer presence. It bought Flip and it's building the Cius business tablet. WebEx and telepresence will be added to both. And Skype could now turn the devices into phones.
Skype is even making a move on replacing corporate phone systems, with today's official launch of Skype Connect. That might catch Cisco's eye, too.
I don't know if buying Skype would be smart, but it would certainly be in character. As long as Cisco is going into these (ugh) adjacencies, a VoIP component seems like something good to pack along.
As for whether service providers would like the idea of Cisco competing with voice service... Hey! Look over there! (Sound of footsteps receding.)
— Craig Matsumoto, West Coast Editor, Light Reading