Facebook, Google exploring Skype video partnerships

Both Facebook and Google (NASDAQ:GOOG) are mulling partnerships with Skype after the Internet telephony services provider delayed its initial public offering plans. Citing sources with direct knowledge of the talks, Reuters reports Facebook CEO Mark Zuckerberg has participated in negotiations to acquire Skype outright, while another source indicates Facebook is instead looking to forge a joint venture--Google has also held preliminary joint venture discussions, the report states. Sources add that all discussions remain in the formative stages.

Skype serves 663 million registered users worldwide as of 2010. A Skype deal could be valued anywhere between $3 billion and $4 billion, Reuters notes. Skype's IPO is anticipated to bring in about $1 billion. The IPO is still on tap for the second half of 2011.

Analysts say a Facebook/Skype deal makes more sense than an agreement with Google, which already offers its own similar service, Google Voice. Adding video chat and other web telephony services would significantly bolster Facebook's product portfolio and give users another reason to remain connected to its platform, especially with so many smartphones and tablets now hitting retail equipped with front-facing cameras: "This is very synergistic," said Global Equities Research analyst Trip Chowdhry. "It puts Facebook two steps ahead of Google because of the number of Skype users."

More than 200 million consumers are now actively using Facebook's mobile products across all platforms, increasing from only 65 million a year ago. In addition, Facebook is the most popular application across most operating systems according to Nielsen Company data published last year: Fifty percent of iOS users have accessed the app within the last 30 days, compared with 45 percent of BlackBerry users and 32 percent of Windows Phone users. In addition, Facebook is the second most popular app among Android users (45 percent)--only Google Maps ranks higher (46 percent).

For more:
- read this Reuters article

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