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Google refused to offer confirmation of the reported Gizmo5 acquisition last month, saying: “We’re always talking to various companies about various things, but we don’t comment on rumor or speculation.”

Now, however, the confirmation is forthcoming: Google has indeed bought Gizmo5, “a company that provides Internet-based calling software for mobile phones and computers.”


Its a $30 million deal, and is one of the strategic “small acquisitions” talked about in Google’s 3Q call.
Gizmo5 plus Google Voice equals a stand-alone phone service similar to Skype, which has rapidly become the preferred route for international calling with 480 million users around the world.
Now Google Voice service no longer requires an underlying account and telephone number from a traditional telecom. What will happen with regulations? If Google is a telecom carrier, things could change yet again for the super-giant.
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