Google, Facebook Both Looking To Team Up With Skype

Facebook and Google are both reportedly trying to strike a deal with popular VoIP service provider Skype.

Sources have told Reuters that Facebook CEO Mark Zuckerberg is mulling an all-out acquisition of the company while another source revealed that the company might form a joint venture with Skype.

Meanwhile, search engine giant Google is also in talks with Skype. Google already offers VoIP services via Google Talk and Google Voice.

However, the source revealed that the talks are in very early stages and ran a danger of collapsing midway. It is also not clear which company Skype is likely to go with.

On one hand, there is Facebook, with its 500 million + users that could give Skype the platform it needs to expand. Google is also moving big into the enterprise cloud services market and could use Skype to boost its portfolio.

Skype is also planning its first initial public offering, most likely in the second half of 2011. The company is expected to raise around a billion dollars from the IPO. With more companies moving into VoIP services, some analysts have speculated that Skype will need to work with a larger company to survive future competition.