Cisco Systems to purchase Skype?

Telecom and network equipment manufacturer Cisco Systems would like to get their hands on the Skype Internet telephony service.

If we are to believe a well informed source referenced on the TechCrunch blog, telecom and network equipment manufacturer Cisco Systems recently made an offer for the Skype Internet telephony service. Skype is currently valued at 5 billion dollars, with preparations underway for its launch on the stock market.

According to the source referenced by TechCrunch, they weren’t the only party interested as search giant Google was also looking at acquiring the company before abandoning the idea due to competition worries.

While this information hasn’t been confirmed by Cisco Systems or Skype for the moment, it is hardly surprising news as the purchase of Skype would allow Cisco Systems to penetrate the general public market. Large groups spend a lot of time analysing acquisitions of smaller companies, with not all potential targets being pursued. It shouldn’t be forgotten that TechCrunch has history making these kinds of announcements, notably when they stated that Twitter would be purchased by Google, before being denied by the interested party.