Wednesday, May 19, 2010

Google Bids $68 Million For Third VoIP Provider Since Late 2009

Google Inc. has announced that it has placed a bid of $68 million for Global IP Solutions(GIPS). GIPS is based in San Francisco and offers both voice and video over IP Networks. The company's board has recommended the sale to it's shareholders, but it will not be finalized until approved by at least 90 percent.

If, or when, this deal is approved, it will be Google's third acquisition of a VoIP service provider since August of last year. That is when Google announced that it had purchased video compression technology developer, On2 for over $106 million. Then in November Google grabbed Gizmo5 for about $30 million. Gizmo5 was purchased to help improve Google Voice and help them better compete with Skype.

Google's internet in GIPS is most likely due the VoIP provider's technology that allows chatting on applications running Google's Android mobile operating system.

Google looks to be positioning itself to make a bigger splash in the VoIP market, and to make VoIP a more prominent factor in the mobile communication industry. With this announcement, and the fact that Apple and AT&T began allowing VoIP phone calls over their devices and network, it appears that mobile VoIP is the new direction of communications

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