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Rumor Mill: Cisco Skype update

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After it was reported on Monday that Cisco may be in the market to acquire Skype, several news outlets, including The Wall Street Journal and Jim Duffy of Network World, continued the conversation.

Cisco, with its VoIP know-how, could be the one to make Skype profitable (remember, eBay failed at this.) Skype enthusiasts currently trade less-than-perfect call quality for the price of free. The unified communications company could upgrade that quality and charge a small amount. Cisco could also defray consumer costs and contribute to its own profit margin through incorporating advertising. These things will probably irritate some, but I’m sure Cisco will settle on a happy medium.

And that $5 billion figure? It didn’t just come out of thin air – Skype hopes to raise that much in its initial offering.

More as this develops.


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