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Forget Skype, Google acquires Gizmo5 VoIP startup instead

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Wow, remember a few weeks ago when Skype was beset by multiple legal actions from its founders and was in talks to acquire VoIP startup Gizmo5 to replace the underlying codebase that they were being sued over? Well things seem to be moving fast in the VoIP world because today, not only did Skype and its founders come to an agreement and save the underlying codebase, but Gizmo5 got acquired after all--just not by who'd we expect.

Google pounced on the the peer-to-peer VoIP provider Gizmo5 just as its chances of being acquired by Skype had been dashed. Gizmo5 is an unscaled, but proven peer-to-peer VoIP provider. It has six million users for its SIP-based P2P VoIP service. The service would add the a PSTN link to allow incoming or outbound calls to real phones which Google Voice currently lacks. According to TechCrunch sources, Google has bought Gizmo5 for $30 million, but the official announcement has yet to be made.

According to the Washington Post, Skype was going to purchase peer-to-peer VoIP startup Gizmo5 for around $50 million. The purchase was part of a back-up plan in the event that it's lawsuit with Joltid resulted in the company not having access to the underlying code Skype uses to make VoIP calls. 

For more:
- read the TechCrunch article

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magicJack Users Can Now Connect To Google's Gizmo5

Users of the magicJack can now place and receive calls using almost any phone provider in the world including Gizmo5 recently acquired by Google. To top it off, magicJack users now also have a means of connecting directly to office PBX systems using the industry standard SIP communications protocol.

To take advantage of these new "open network" calling possibilities, magicJack users simply need to install the new SIP dialer software plugin "XlitejackPlugin". "XlitejackPlugin" allows magicJack and SIP calls to be placed concurrently from the same regular or cordless phone.

The SIP dialer software plugin supports the use of Counterpath Corporation's X-Lite SIP softphone dialer. Almost every phone provider in the world provides setup instructions and support for using the X-Lite SIP softphone dialer with their networks.

To place SIP calls, just dial # before the number you want to call. Regular magicJack calls are placed as normal. For incoming calls, just answer the phone when it rings.

"XlitejackPlugin" can be downloaded at http://www.pcphonesoft.com

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