Google acquires Global IP Solutions to pump video conferencing

May 18, 2010: 11:04 AM ET

Google pays $68.2 million in cash for the voice and video over IP technology maker.

As part of their expansion into new technology fields, Google has recently been gobbling up companies at a voracious clip.

One area of strong acquisitions is in video and VoIP fields. Google picked up On2 last year and has been building an open source video codec called VP8 around On2's technology. The company also purchased Grand Central to become its Google Voice routing service and Gizmo5 to serve as its 'Skype-killing' VoIP provider.

Last night, Google (GOOG) purchased Global IP Solutions, a Swedish company voice and video over IP technology company with headquarters in San Francisco and offices in Stockholm, Boston and Hong Kong. Besides Google, GIPS customers include Nortel, Oracle (ORCL), Samsung, WebEx, Yahoo! (YHOO), AOL (AOL) and other players in the Video/VoIP market. Google announced that they'd support current GIPS customers throughout the length of their contracts.

One customer not mentioned is Skype, who used GIPS technology to build their original product.  Skype dropped (then named) Global IP Sound in 2006 and moved over to a different technology integrated from SPIRIT DSP.  Skype cut ties with GIPS in 2007.


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