Skype buys start-up GroupMe for group conferences calls

PanARMENIAN.Net - Skype has agreed to acquire New York-based start-up GroupMe, The Wall Street Journal reported.

GroupMe's application lets users text and make conference calls with circles of friends or colleagues. The one-year-old company was purchased for around $80 million. The deal is expected to close Monday, August 22.

"We think the mobile group messaging space is very important. It means furthering the breaking down of barriers to global communications," said Skype Chief Executive Tony Bates.

The deal comes as Microsoft Corp. is still in the process of seeking approvals from regulators to close its $8.5 billion acquisition of Skype. In June, the U.S. Federal Trade Commission approved the deal, but Mr. Bates said the company is still waiting for the European Commission to approve it. The GroupMe technology could end up becoming a valuable asset for Microsoft as the software giant looks for ways to distinguish smartphones based on its Windows mobile operating system.

GroupMe, founded in 2010, was one of a number of start-ups building wireless services that let people communicate in private groups over cellphones. The company said its service currently sends about 100 million messages a month.

For now, the Skype CEO said, the two companies would operate independently and GroupMe's mobile applications will continue to exist. Down the road, he said, they would combine their technologies.

All of GroupMe's 20 employees will be joining Skype, the two companies said, including GroupMe's two co-founders, Mr. Martocci and Jared Hecht.