Skype Acquires Qik For $150 Million (Including Earn-Out)
This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry
Internet voice calling service Skype has bought a Qik, one of their biggest competitor for $150 million. The Qik team will be paid $100 million up front and $50 million will be in earn-out. It’s likely that Skype will discuss their strategy with the Qik acquisition at the Consumer Electronics Show in Las Vegas.
Qik had 600,000 users at the beginning of 2010 and ended the year with 5 million. Qik also has partnerships with Sprint, T-Mobile, Samsung, and Nokia. Bob Rosin, the EVP of business and corporate development at Qik helped get the telecommunications deals. Qik gained in popularity as it was seen as the best video streaming service on Android. Ben Horowitz and Marc Andreessen investors in both Qik and Skype. Qik was co-founder by Bhaskar Roy, Ramu Sunkara, and Nikolay Abkairov.