Google Acquisition Holdings, a subsidiary of Google, has made a cash offer to acquire Global IP Solutions (GIPS), known for providing voice and video processing in IP communications. Google will make a public cash offer of about $2.12 in cash per share or an aggregate price of about $68.2 million for all of GIPS' shares. "The Web is evolving quickly as a development platform, and real-time video and audio communication over the Internet are becoming important new tools for users," said Rian Liebenberg, engineering director at Google. "GIPS's technology provides high quality, real-time audio and video over an IP network, and we're looking forward to working with the GIPS team at Google to continue innovating for the Web platform." The offer document will be published and distributed to all GIPS shareholders by May 20th. Google's cash offer needs to be accepted by the holders of at least 90% of GIPS' share capital and will expire around June 4th. Global IP Solutions (GIPS), headquartered in San Francisco, provides voice and video processing technology for IP networks with an admirable customer list including Nortel, Oracle, Samsung, WebEx, Yahoo!, AOL and other key players in the VoIP market
This is a huge earning for just an IP solutions. It seems Google can earn and dominate for whatever they are doing.
Looks to be a good move since Google is already in the streaming massive amounts of video industry (youtube). VOIP is becoming more popular. Even a decade ago most people relied heavily on Ventrilo, Teamspeak, or other paid options. Now with services such as Skype, IP streaming information is going to become an even bigger market as internet usage approaches an even larger critical mass. Matt
Seems like google is always buying something or trying to buy something anyway. Must be nice to have the money to buy just about anything they want.
That is what big gun like Google and Microsoft always do. Instead of starting it all from scratch, it's usually better for them to buy existing business that's proven to be working or have a potential. - Dynashox -