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Skype acquires Sonorit and Camino Networks

By Justin Mann

On April 11, 2006, 2:06 PM

In a press release issued today, Skype announced the acquisition of a smaller competitor for VoIP. For an impressive $27 Million, Skype will be acquiring a start-up VoIP company called Sonorit, a company based in San Francisco, as well as a subsidiary of Sonorit called Camino Networks. Skype's decision for the deal was influenced not by Sonorit's infrastructure, but their engineering team, which will help Skype further develop their VoIP hardware and software. In many areas of emerging technologies, buyouts like this are common. Skype is looking to stay a step ahead of companies like Vonage, and with all the trouble plaguing Skype recently in the courts, that's a good idea.

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  1. This is a Skype / eBay move in the right direction to complete with Microsoft, Google, AOL and Yahoo, and let's not forget that Google is a very strong technology company and top eBay competitor. Skype core biz is voice and it cannot afford to depend on the 3rd party license, but must own the core voice technology, as Microsoft does.However Sonorit/Camino is too small (less then 10 people), was formed as a company just several months ago, has no shipping product, has no single customer, so this acquisition does not solve Skype technology hole yet.This acquisition is not to avoid paying royalties to GIPS, this is strategic Skype technology move to compete with Microsoft, Google, AOL and Yahoo, there are several clear less costy ways for Skype to stop paying royalties to GIPS, and GIPS legal suite has no strong base.Following Skype acquisition by eBay in September, this acquisition validates again high market prices for software voice technology companies, like Skype, GIPS, Camino and SPIRIT.

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