Google hires Vinton Cerf or Vinton Cerf decides to work for Google. No matter how you look at it, it's the Internet hiring of the year. As most people know - or should know - Cerf was one of the key people behind the creation of the Internet - long before it morphed into the World Wide Web and made dot-com millionaries out of teenager entrepreneurs. Not sure what Cerf, who will be Google's chief Internet evangelist, will exactly do but it certainly gives the company more credibility as it moves to take over the Web. Om Malik believes Cerf will play an instrumental role in building GoogleNet, a national broadband network the company will need to deliver rich Web-based services. For more about Cerf's hiring, here's a story from the San Jose Mercury.

Way out from left field, the Wall St. Journal is reporting eBay Inc. is in talks to acquire Skype for $2-billion to $3-billion. The idea is that eBay's auction business is maturing and it is using acquisitions to move into new markets. eBay purchasing online auctions houses overseas makes sense as do moves into new areas such as online rental listings. But spending $3-billion to buy Skype puzzles me. If anyone can explain eBay's strategic thinking, I'm open to be educated. For investors, eBay's interest in Skype could be an alarming indication management is concerned about the growth prospects for the auction business, which may explain why eBay shares have fallen today.
Now before anyone gets too excited about the WSJ story, it's also important to remember Skype's clearly in play given it has hired Morgan Stanley to explore its options. Part of the process is speculation by various interested parties to spur interest. If these people are successful, suddenly the idea of Skype being worth $2-billion to $3-billion becomes not only plausible but realistic. Don't be too surprised to read more stories about how Yahoo or AOL or Google or Microsoft or Barry Diller are "in discussions" to acquire Skype. The game is on and it's only a matter of time before Skype makes Niklas Zennsom, Janus Friss, Draper Fisher Jurvetson, Index Ventures, Bessemer Venture Partners and Mangrove Capital Partners very, very rich.
Russell Shaw thinks an eBay-Skype marriage is a good idea to generate more revenue by getting eBay customers to use other Web-based services. Andy Abramson is on board too, while VOIP Magazine's Bryan Richard thinks it makes no sense. Fred Wilson, who thinks Skype is a bargain at $2-billion to $3-billion, doesn't see the synergies of an eBay deal, although he'd like to buy some Skype IPO shares.
Addendum: Om Malik has a post citing a Swedish newspaper that suggests Skype has annual sales of about $70 million. Doing a little quick math suggests a $2-billion to $3-billion purchase would give Skype a price to revenue multiple of 30 to 45 times.

With competition - Google Talk, Microsoft Teleo, Yahoo Dialpad - looming on the horizon, Skype appears to be pulling out all the stops to keep up its momentum with the launch of a voice service program for content providers. It looks like Skype wants is the  integration of  its free and premium services with content. It cites an example of Skype users having easy access to traffic reports, horoscopes or language learning tools. For content providers, the appeal of the Skype program is they have a new tool to attract more users and generate revenue from premium Skype service. From a big picture perspective, I wonder if Skype has plans for a portal offering voice and non-voice services and content?

There are reports Bell Canada is going to unveil plans today to expand its residential VOIP service in Ontario and Quebec. The obvious question is: what took Bell so long to get its act together? While there are no details about pricing, the service will apparently include all the regular bells and whistles such as an interactive portal, email as voice-mail and call-filtering. While Bell took its sweet time to get into the game (not including its three-city venture in Quebec), there is no doubt it will get a lot of business from people who want all the benefits that VOIP has to offer. The challenge for Bell will be resisting the urge to try to replace the revenue it will lose from cannibalizing its traditional telephone business. The $20-billion voice market in Canada has become ultra-competitive with the entry of Vonage, Primus, AOL and the cablecos so Bell must think as much on fighting back as it does on protecting its own revenue.
Update: What's particularly interesting about Bell Digital Voice is it's a hosted solution. It means there's no need for an adapter or back-up power in your house. To switch from Bell's traditional service to VOIP, all you need to do is make a call - no fuss, no muss, no truck roll. Now that's innovative. The only downside is the cost of the service as Bell doesn't want to be a price leader. For BDV with 1,200 minutes of North American LD, it's $61, while BDV with LD in Ontario is $53.

Rick Segal, who writes Post Money Value when he's not being a VC with J.L. Albright, is trying to do his part for the victims of Katrina by getting one of his portfolio companies, Genesis Building Innovations, involved in the rebuilding process. Genesis offers kits to quickly construct commercial and residential buildings using steel framing rather than lumber, concrete or masonry block. These buildings are rated to withstand 160mph winds. Genesis wants to donate kits to replaces buildings that were destroyed, particularly in towns that are "off the grid".. If you'd like more information or want to join the cause, drop Rick an e-mail at rick@jlaventures.com.