Skype's the Limit for Facebook and Google

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BY BRICE SANDER ANCHOR CHANCE SEALES You're watching multisource tech video news analysis from Newsy. I...
BY BRICE SANDER ANCHOR CHANCE SEALES You're watching multisource tech video news analysis from Newsy. It’s a battle of the Internet giants. Facebook and Google are at it again, this time playing tug-a-war video-chat service Skype. CNBC’s Courtney Reagan went on KNTV to catch us up on the deal that could go down. COURTNEY REAGAN: “Well Facebook and Google are reportedly mulling separate tie-ups with Skype after the Internet phone and video service put off plans for an IPO. Reports say that Mark Zuckerberg was involved in talks to possibly buy Skype. The deal could be worth as much as $4 billion, and also considering a joint venture with Google.” The kicker here? If Skype goes public, whomever it partners with looks to make half-a-billion dollars- minimum. That makes a writer for The Register question whether the Skype deal’s for real. “It remains unclear if [Skype’s CEO’s] decision to delay the possible IPO was made to help fluff up Skype's valuation ahead of the firm going public, or if he is simply waiting for the best suitor to step forward with a desirable buyout offer.” Skype previously partnered with Facebook, integrating its News Feed and Phonebook into its software. And a writer for the Guardian suggests Facebook is the better fit. “It is not hard to imagine Skype calling integrated into Facebook, for when the likes, wall posts and private messages just won't do. Both firms, too, have sizeable communities of engaged users: Facebook has more than 600 million registered accounts; Skype has 560 million, of whom about 124 million make calls in the average month.” Google already owns the voice-calling software Skype uses. Business Insider’s Matt Rosoff argues Google’s getting greedy. “The deal would ... give Facebook an immediate way to add voice and video conferencing to the pretty lame Messages feature it introduced last year... The fit for Google isn't as clear -- Google already has a voice and video chat service called Google Chat. But it might be willing to pay up just to keep Skype out of its top rival's hands.” But others say- not so fast. A deal would make perfect sense for Facebook, but Skype might struggle to make money. However... “A deal with Google could maintain [Skype’s] corporate business focus, considering Google’s network of small, medium and large sized businesses. As Skype service could be integrated to Google apps, and with their android mobile phones, consumers would also benefit.” (Impact Media) No word on when the deal could be done, but reports claim Skype plans to go public sometime this fall. Follow Newsy on Twitter Newsy_Videos for updates in your feed. Get more multisource tech video news analysis from Newsy. Transcript by Newsy.