Tuesday, August 31, 2010

This just in. It looks like Cisco is going to buy Skype. I really do not know of any perfect combination but the two right now. Cisco is investing on huge VOIP structures and is still the leader in Routers, Switches and Hub market. If the price to pay is going to be around 5 Billion then they could probably get this to the works soon. Skype was initially bought by Ebay a couple of years ago but was literally sold to the public like much of its wares. Skype did not earn a lot before hand but it is picking up slowly this year after the financial crisis. Cisco is currently using technologies such as WEBEX for meetings and video conferencing. This is one area that Skype may be able to transfer its consumers too. Even if there are only quite a number of people using the service, 8.1 Million subscribers for Skype Out is no joke. The rest uses their free service. If a lot of people harness this particular brand still, there will be a huge demand for VOIP structures which Cisco can benefit in. Cisco bought Pure Digital and Linksys a few years back in an attempt to penetrate the SOHO market. It is but a great investment if they can control this one too. Maybe Oprah can get into the groove once Skype and Cisco gets together. I'm sure her Video Streaming technology would WOW anyone if they saw what Webex can do too. It is after all professional and way better than Skype. If the technologies merge as expected, it will get more advertisement and space in this industry. Although one drawback is Cisco may have to battle it out with their current biggest customers like Verizon and AT&T.

I will be working with these people soon. I hope everything turns out right and get the Skype shares to double or triple the price. It would also be nice to buy stocks as early as now.



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