Facebook, Google Reportedly Battling for Skype

Facebook and Google have increasingly crossed over into one another's online turf. Now the Internet giants may be waging a new war -- for Skype.

Huge global installed base of users

Skype has a huge global installed base of users and a complete VoIP (Voice over Internet Protocol) telephony infrastructure. It could be gladly deployed by Facebook or Google, even though Google already has most of the same assets, according to Greg Sterling, principal analyst at Sterling Market Intelligence.

"There's an in the extreme good fit with Facebook, and it could provide assets the company doesn't already have, as then as a couple of potential new revenue streams," Sterling said.

All this may seem familiar to Skype, which was founded in 2003. eBay acquired the at that time-fledgling company in 2005 for a whopping $2.6 billion in cash and eBay stock, plus potential performance-based consideration. The acquisition was supposed to strengthen eBay's global marketplace and payments platform, during opening several new lines of business and creating significant new monetization opportunities for the company.

It didn't work out so then. In April 2009, eBay announced it would spin off the Internet VoIP telephone service and make an initial public offering while the first half of 2010 afterwards deciding Skype had limited synergies with eBay and its PayPal subsidiary. The company spent a year evaluating Skype and its potential within eBay's portfolio earlier deciding that a spin-off was the best choice.

Skype has evolved since eBay set it free. Skype acquired Qik, a mobile video software firm, and in March launched a new iPhone app called Qik Video Connect. The new app lets people launch video calling, video messaging, and video sharing. In March, Skype as well announced the launch of advertising in Skype software. Ads now appear in the home tab of Skype for Windows.

Going back to February, Skype announced a mobile partner program for operators in markets with low 3G broadband penetration and launched a hot-spot partnership program with leading Wi-Fi providers.