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Google confirms acquisition of VoIP company Gizmo5

updated 10:45 pm EST, Thu November 12, 2009

Buy could help company compete with Skype

Google on Thursday officially confirmed its acquisition of the VoIP company Gizmo5. Unnamed sources leaked the information earlier this week, including the alleged $30 million price tag. The startup initially had been eyed by Skype, however the deal never materialized.

The acquisition has lead to speculation that Google is planning to take on Skype and dedicated phone companies. The search giant could combine its free phone-number service, or even Google Talk, with Gizmo5's VoIP calling system.

Gizmo5 is no longer accepting new subscribers for its $6/month service, although it will relaunch after the transition. The service boasted cheap calls to anywhere, no per-call connection fees, and integration with Google Voice accounts.

"We've acquired a number of small companies over the past five years, and the people and technology that have come to Google from other places have contributed in many ways, large and small, to all kinds of Google products," Google wrote on its blog. "Since the GrandCentral team joined Google in 2007, they've done incredible things with Google's technology and resources to launch and improve Google Voice."

Google and Gizmo5 have yet to disclose how their respective technologies will be integrated.

By Electronista Staff
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  1. lolcat789

    Fresh-Faced Recruit

    Joined: Sep 2009



    VOIP for Google talk users.

  1. iphonerulez

    Dedicated MacNNer

    Joined: Nov 2008


    Apple is the only company with

    lots of money that isn't acquiring any smaller companies. I wonder if that's a good thing. They've already got their hands full, so maybe there's no point. It's just that Apple can pick up companies at relatively low prices. I hope Apple has some grand plan that it's saving all that reserve cash for. In a year, Apple could fund a half-dozen data centers. I wish they'd invest in some WIMAX venture.

  1. testudo

    Forum Regular

    Joined: Aug 2001


    Re: Apple

    Apple acquires small companies all the time. They just usually go under the radar. Then, after a couple of years, they release some updated hardware/software based on the purchase. (That assumes they just don't rip the people right off, like with Sherlock or Dashboard).

    And how exactly does Apple have their hands full? They've got a computer business, a phone business, and a music/video online store. Doesn't seem like they're stretching themselves too thin.

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