Skype acquires Qik mobile video company

Zubair Ghumro (L) speaks to his friend Sheeraz Qazalbash using Skype software at an internet cafe in central London August 10, 2010.

Credit: Reuters/Paul Hackett

SAN FRANCISCO | Thu Jan 6, 2011 3:45pm EST

SAN FRANCISCO (Reuters) - Internet telephone service Skype said it acquired mobile video company Qik for an undisclosed amount.

Qik's service -- available on more than 200 mobile phones, including Android and Apple's iPhone -- lets users capture and share video across smartphones and the Internet, Skype said in a news release.

Skype, partly owned by Web retailer eBay Inc, is expecting to raise up to $1 billion in an initial public offering, sources familiar with the matter told Reuters in November.

Skype said the transaction to buy Redwood City, California-based Qik, with 60 employees, should be completed this month.

(Reporting by Noel Randewich; Editing by Steve Orlofsky)