Reuters scoop on Facebook and Google eyeing Skype deals goes viral

Reuters was first with what would be one of the hottest deal rivalries in Silicon Valley: Facebook and Google vying for a tie-up with Web video conferencing service Skype in the form of a joint venture or outright acquisition. Reuters broke the news on May 4 that Facebook Chief Executive Mark Zuckerberg has taken part in internal discussions about buying Skype, which would be valued at $3 billion to $4 billion. Securing Skype — which is readying for an IPO — would expand Facebooks user base, help it grow in international markets where Skype is popular, and give the online social networks half a billion users another reason to remain active in the community. For Google, Skype could be incorporated into Google Voice and boost the company`s social media credibility. The Reuters story was picked up by virtually every major competitor including the Wall Street Journal, Bloomberg and CNBC. Time Magazine, Los Angeles Times, Washington Post, overseas newspapers such as the Independent and the Guardian, as well as a host of technology blogs also picked up the story. The Reuters scoop went viral online through Twitter and Facebook, with over a thousand users debating which company would be a better buyer for Skype.