Skype and Google to merge?

Filed in archive Venture Capital on June 3, 2004

Paul Allen has found the newest M&A rumor:

"So here's why a Google/Skype combination would work:

1. Google will have nearly $3 billion available in the short term; they could invest as much as Skype needs to finish building out the technical infrastructure so that Skype users can call any phone in the world.
2. Google has hundreds of millions of users and could dramatically increase the number of Skype downloads and therefore exponentially increase the value of the Skype network.
3. Google already offers voice access to some of its search and news services; but they could integrate voice activated queries and audio responses from the Google servers into the Skype service. It would be amazing to drive down the freeway with my Skype mobile phone and Jabra earpiece and say "search Google for Mexican restaraunts in Sandy, UT" and have it retrieve and tell me all the listings. Or a million other more important queries.
4. Even more important to me, I want Google to offer me audio access (both send and receive) to my gmail from any phone, and I want it to be free. I remember when Onebox.com did this back in 1999. You could send a voice email message from your phone. It was so hot that Phone.com paid $850 million (in bubble money, of course) to acquire them with only 2.5 million non-paying customers. I'm guessing that the Skype infrastructure would make this possible with no long distance charges.
5. Google may someday develop audio search engines that could access all of my previously recorded email messages and phone conversations (and meetings that I tape on my iPod with the Belkin voice recorder accessory). Owning Skype would give them a lot of audio data to play with in their Labs."

It would be such a delight, alas I fear we might have to wait a little :)