Skype to buy mobile video company

By Dow Jones Newswires
Posted Jan. 6 at 1:07 p.m.

Skype has agreed to buy Qik, a service that lets users stream video from their smart phones, for an undisclosed amount.

The price tag has been reported to be about $100 million, though Skype said it won’t provide terms. The deal is expected to close this month.

The move comes as Skype looks to bolster its smart phone-video operations as more companies, such as Apple Inc. with its Face Time video application, jump into the smart phone streaming-video fray and live video-streaming services such as Ustream gain popularity.

Qik, based in Redwood City, Calif., has about 60 employees. The company was founded in 2006 and provides services that allow for the capture and sharing of video across mobile devices, the Web and desktop platforms. Qik has seen rapid growth, as its corporate blog says it started 2010 with 600,000 users and ended the year with 5 million.

Qik is available on more than 200 mobile phones across the Android, iPhone, Symbian, BlackBerry and Windows Mobile platforms.

Skype, which offers voice, video and text services to consumers and businesses, has grown rapidly since it was founded in 2003. In August, the company filed plans to sell up to an estimated $100 million of American depositary shares in an initial public offering.

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