Cisco May Acquire Skype

Rumours suggest that Cisco may be looking to acquire the popular Internet telephony service, Skype.

The California-based enterprise networking giant, Cisco System, has placed an offer to take over Skype before it wraps up the process of Initial Public Offering (IPO), technology news website Softpedia has reported.

The news comes after Google abandoned its plans to acquire Skype in order to strengthen its foothold in Voice over Internet Protocol (VoIP) services which include voice and video chat in the form of Gmail and Google Voice.

Sources within Google confirm that the Internet search behemoth did not make an offer to Skype due to possible intervention from federal regulators, citing anti-trust litigation fears in its core policies.

First reported by TechCrunch, the news about Cisco willing to acquire Skype has not been confirmed by either companies.

Skype was previously acquired by online shopping portal eBay, however, it failed to integrate VoIP capabilities to its popular online shopping portal and spun the entity as a stand alone business.