Bid Price Likely To Be Up To $400 Million For VOIP Startup Jajah
November 10, 2009 12:08 PM
A source in Silicon Valley says that there is a bidding war for the VOIP startup Jajah. This follows news yesterday about Google’s acquisition of Gizmo5. It seems that a host of bidders including Cisco, Microsoft and Telefonica Europe (O2) are willing to pay between $200 million to $400 million for Jajah.
Jajah traces its history to 2005 when it allowed cell users to use VOIP. It also got VC funding from Sequoia Capital, Globespan Capital Partners, Deutsche Telekom and Intel. Jajah rivals Skype and last summer it connected its 1 billionth call. In April 2008, it got 10 million users. It currently has 25 million users in 122 nations and has calling access to more than 200 places worldwide.
Its revenues seem enough to fuel its growth and make it a target for acquisition and a bidding war too. MS and Cisco seem more likely buyers than O2 as they have huge amounts of cash. Redmond also has a partnership with Jajah on IP communications. The price is high for Jajah, but when a bidding war breaks out, it’s expected.
