Friday, November 13, 2009

Google Continues Its Buying Spree With Gizmo5 Acquisition

. Friday, November 13, 2009

By stockOzone team

Putting an end to rumors, Google on Thurday confirmed that it had acquired Gizmo5, a company that offers voice-over-IP software for mobile phones and computers.Terms of the deal were not disclosed, and no specific product announcements were made as a result of the acquisition. Gizmo's service is similar to Skype's in that it lets users to make low-cost or free calls using a software client on their computers. Gizmo5 also offers a client for mobile-phone users.

Google Voice and Gizmo5 are already integrated: Voice users are able to use the Gizmo5 service as one of their numbers.

Gizmo5, which was founded in April 2003, has raised $6 million to date, plus an unspecified amount from founder/CEO Michael Robertson.

"We think this allows Google to compete head-on with Skype, as this supports IM and VoIP calls, allowing users to chat with friends on Gizmo5, MSN, AIM, Yahoo and Jabber," J.P. Morgan Analyst Imran Khan wrote in a research note. "Users can also make video calls through the desktop version, share files from their mobile phone or computer, and send SMS messages directly from their Gizmo5 account."

It is the fourth acquisition Google has announced this year. Earlier this week the search engine giant said it would buy AdMob for $750 million.

Disclosure: Author does not own any of the stocks discussed here.

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