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Google vs Facebook in the big fight for Skype

By Lauren Myatt

Staff working at computers

Yesterday Reuters uncovered a fight to buy out Skype, and now details have emerged showing that the big contenders Facebook and Google could bid upwards of $4 billion in the deal, which is quite a jump from Skype’s projected IPO of $1 billion.

Considerations for the tie-up came after the web video conferencing service’s CEO, Tony Bates, postponed the company’s initial public offering to the latter half of 2011.

In one corner, we have an ambitious social media giant with an army of faithful users, many of whom are likely already Skype users.  Used for social interaction, networking and Facebook marketing, this internet giant stands with 124 million connected users.

In the other corner, is a more seasoned internet Goliath, who in February of last year purchased On2 Technologies, which licenses Skype’s VP7 video compression/decompression technology.  Google voice hasn’t been a huge success so Skype would provide the perfect investment for this internet giant.

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