Google Purchases VoIP Specialist Gizmo5

With an eye on bolstering up its VoIP offerings, the search engine giant Google has gone ahead and purchased Gizmo5, a startup which offers services similar to Skype for a price of around $30 million according to a report carried by TechCrunch.

The move from Google is seen by many as an effort to position itself as major VoIP solution provider like Skype by harnessing the technology offered by Gizmo5 into Google Voice and thus increase its share in the fast growing VoIP market.

It is interesting to note that Michael Robertson who owns Gizmo5 was also in talks with Skype over a possible acquisition offer; however with Skype settling its legal issues with its former founders, Gizmo5 landed up in the Google stable.

Of late Google Voice has been in news for several reasons including its ability to make and receive calls from a single number to FCC investigations based on a complaint filed by AT&T.

With the current acquisition, the service likely to get a major boost and a major area where Gizmo5’s technology is likely to help Google Voice is the capacity to make calls to traditional phone lines, a service which Gizmo5 has been successfully able to execute.

Our Comments

Interesting to find Michael Robertson in the deal. The guy has been behind a number of successful ventures including MP3.com (which was sold to Vivendi Universal and subsequently landed in Cnet) as well as Lindows/Linspire.

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