Monday, November 9, 2009

Google gobbles Gizmo and AdMob

Looks like good days are back again. Definitely M&A is picking up the steam. Google gobbled Gizmo and Admob today. Gizmo deals with VoIP calls and voice service in general and AdMob deals with mobile advertisement. Gizmo seems to be a smaller deal compared to AdMob for which Google paid $750 million. According to techcrunch, Gizmo deal is in the range of $30 million .

There were lots of rumors last month about Skype’s plan to buy Gizmo. That did not materialize. I’m not sure what the rationale behind Google buying Gizmo is. Is it because of their PSTN connectivity, which Google Talk can use to bring in the PSTN calling or the strong SIP backend that Google products like Google Wave , Gmail, Google talk etc can use for VoIP connectivity.

With Gizmo acquisition, Google seems to be very aggressive with their Voice service. Beware Skype, Cisco, and Microsoft! The giant is moving in the Voice arena.

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