Google acquires Gizmo5 for $30 million, competition for skype

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Rohit S

10 November, 2009

Google is all set to play big in the Voice over IP (VoIP) market and will be competing skype all thanks to an acquisition of VOIP start up Gizmo5.

GOOGLE IS all set to play big in the Voice over IP (VoIP) market and will be competing skype all thanks to an acquisition of VOIP start up Gizmo5. It is believed that Google has purchased Gizmo5 for $30 million. It would be Google’s Gizmo5 Vs Skype competing against each other if Google acquires gizmo5.

Gizmo5 is based in San Diego and develops software that allows user to make VoIP phone calls using one’s PCs or other mobile devices. The technology will allow one free PC to PC calling as well as discounted calls to mobile phones or landlines.

The acquisition of Gizmo5 will give google complete VoIP capability and would be well equipped to compete Skype. Google currently offers the Google Talk which allows free on line chatting between users but which cannot call specific phone numbers. Also both the users must have the Google Talk running in order for it to work.

Google is also beta testing the Google Voice. The Google Voice will let users have a single phone number which call all the users’ other phones and will have a number of features like phone call recording, conference, phone screening and will work with sms as well.

With the acquisition of Gizmo5, Google can get the Google Voice and Google Talk together into a single product which can be a threat to skype, which is currently the primary VoIP provider.

On Monday Google announced its acquisition of AdMob, a three year old mobile advertising display company, for $750 million

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