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Google acquires Gizmo5 VoIP startup

updated 07:30 pm EST, Mon November 9, 2009

Buyout could make Google Voice a Skype competitor

Google has allegedly moved to acquire the VoIP startup Gizmo5, according to a TechCrunch report. Neither company has announced the sale, although the unnamed sources claim it has been finalized for a sum of $30 million in cash. The purchase follows recent reports that Skype was eying the startup, a deal that never came to fruition.

The Google move has fueled speculation that the company is planning to expand its current Google Voice service with true VoIP capabilities. Google Voice currently lacks the technology necessary to route incoming or outgoing calls to landlines and cellphones, a capability Gizmo5 already offers.

The additional capability is expected to transform Google Voice and Google Talk into a competitor against other VoIP companies such as Skype. Google's plans for the startup remain unknown, although the companies are said to be ready to soon make a formal announcement of the acquisition.

by MacNN Staff



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