Cisco Poised to Buy Skype?

All in all, it would be a nice fit. Cisco has been pouring resources into unified communications, such as with its deal for Tandberg (a provider of video conferencing). And, the fact is that Skype is a disruptive force in the industry, with 560 million registered users. For the first half of this year, the company posted revenues of $406 million.

From a technology standpoint, Cisco would also get a valuable peer-to-peer infrastructure. Essentially, this uses the power of users' computer systems to carry out Skype's communications. This is how the company can deliver its services at rock-bottom prices.

However, for Cisco's shareholders, there will be some concerns. Keep in mind that the buyout could cost $5 billion -- if not more. While Cisco can certainly handle this, the price tag is still hefty.

Besides, a deal for Skype could be problematic for a chunk of Cisco's customers who may see this move as a competitive threat. Then again, if Cisco wants to find growth, acquisitions will be critical. And by all accounts, there should be more and more growth for Skype.

Tom Taulli is also the author of several books, including the Complete M&A Handbook as well as the upcoming book, All About Short Selling.