Tango Video-Chat Service for Smartphones Said to Be Valued at $160 Millionhttp://www.bloomberg.com/news/2011-06-16/tango-video-chat-service-is-said-to-be-valued-at-160-million.html?cmpid=yhoo
Tango, a service that lets users make video calls from their smartphones, received about $30 million in a round of funding that values the startup at $160 million, two people with knowledge of the matter said.
Investors include former Cisco Systems Inc. executive Daniel Scheinman, investment banker Bill Hambrecht, venture capitalist Bill Tai and entrepreneur Michael Birch, said one of the people, who asked not to be named because the funding was confidential.
Founded in 2009 by video-technology veterans Uri Raz and Eric Setton, Tango has attracted 15 million users to its free application, which runs on Apple Inc. (AAPL)’s iPhone and other camera- equipped smartphones. It competes with Apple’s own app and Skype Technologies SA in the surging market for free video calls made over mobile devices. Microsoft Corp. (MSFT) agreed to buy Skype for $8.5 billion in May.
Well, I'm certainly not at all shocked that Microsoft bought Skype. They buy everything. Anyway, to the actual point of the article... I think that Tango is an excellent application and I'm not suprised that it's worth that much money. It make video talk available to anyone with a smartphone instead of exclusively Apple users. It's a revolutionary product. However, I think it's more fun to play with than actually use. Video chat is slow, you can't hear the other person s voice, it lags. It has a long way to go in terms of being useful. I look forward to seeing Tango improve their product over the next year or so.
Stock prices for closing 6/16/2011: