On Thursday, Mobile Marketing Watch reported that considerable buzz had been generated around rumors of Skype acquiring video sharing service Qik.
By Friday morning, Skype confirmed that the company has, in fact, entered into a definitive agreement to acquire Qik, a provider of mobile video software and services that enable individuals to capture, instantly share and preserve great moments on video from anywhere.
“The Qik team has delivered exceptional video experiences for its mobile partners and millions of end users across a range of devices,” said Tony Bates, Skype’s Chief Executive Officer. “Skype’s software enables an estimated 25 percent of the world’s international long distance voice calling minutes*, and approximately 40 percent of those Skype-to-Skype calls are happening over video. Qik’s deep engineering capabilities and strong mobile relationships will be an impressive complementary fit with Skype.”
Neither Skype or Qik has offered comment on the deal’s financial terms, although even the most conservative of industry estimates place the value of the purchase in the ballpark of $100 million.
It’s a big investment with ample hopes of a big payoff for Skype, which recently introduced video chat support for the iPhone. Given Qik’s reputation as the best video streaming option for Android, it appears Skype is poised to build upon its already massive presence in the mobile world by enhancing its offerings on two of the largest mobile platforms in existence.
“Qik has worked very hard to solve complex problems that allow millions of people everyday to take advantage of sharing their lives with those people who are most important to them,” said Vijay Tella, Chief Executive Officer of Qik. “Joining Skype allows Qik’s team to unite with Skype’s talented team to develop new and innovative products for our customers and partners.”