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Yahoo buys Dialpad, enters Net phone market

Scott Ard Former Editor in Chief, CNET
CNET former Editor in Chief Scott Ard has been a journalist for more than 20 years and an early tech adopter for even longer. Those two passions led him to editing one of the first tech sections for a daily newspaper in the mid 1990s, and to joining CNET part-time in 1996 and full-time a few years later.
Scott Ard

Internet portal giant Yahoo has acquired Dialpad, a 6-year-old provider of Internet phone services. The acquisition, which was announced on Dialpad's Web site, will place Yahoo in direct competition with traditional phone companies such as SBC, as well as Net phone providers like Skype and Vonage.

In its announcement, Dialpad noted that "Yahoo plans on leveraging Dialpad's PSTN calling capabilities to add to Yahoo Messenger's recently enhanced PC-to-PC voice calling offering. These products are very complementary and by combining our strengths, we are better positioned to take advantage of the fast growing IP telephony market and build a range of exciting new services." Dialpad claims to have 14 million users.