Telefonica Buys VOIP Startup Jajah For $206 Million
December 23rd, 2009
Telefonica (NYSE: TEF) is buying up VOIP provider Jajah for $206 million in cash. The company—which had raised $35 million in venture capital funding—had been up for sale for more than a month now and several companies, including Microsoft (NSDQ: MSFT) and Cisco (NSDQ: CSCO) had also been said to be interested. In recent days, however, there were reports that Telefonica had beat out those two companies in the bidding.
In a release, Telefonica says that it will offer Jajah’s services to “customers wishing to extend their communication experience”—beginning in Europe, where it operates under the name O2. It will retain the Jajah brand.