Why Amazon needs Net2Phone- and vice versa

Net2Phone is an IP Telephony pioneer that has fallen on hard times. Here are the numbers.

Net2Phone is an IP Telephony pioneer that has fallen on hard times.

Here are the numbers. They aren't pretty.

Right now they are trading at $1.78 a share. And they are in talks to be acquired by IDT Corp. The two sides are talking, but may not be all that close to an agreement.

But I have a better idea. How about if Amazon bought Net2Phone?

OK, let me state my case. Our sister site ITFacts lists the top ten most visited sites in August, as determined by Nielsen/Net Ratings. The listing also provides the "average time spent" on each of these sites per visitor over the same month.

Earlier today, I posted details about how the seven most visited sites all have some sort of voice telephony capability, are building it, or are owned by a company that is already there.

Eighth, is Amazon.

When I think of Amazon, I think of one of their main competitors- arguably their main competitor- as eBay. Yes, that same eBay that is buying Internet phone giant Skype.

And as I pointed out here, eBay feels they can use Skype to enable buyer-seller voice communications that will result in increased revenue and sales.

Last I checked, Amazon also had active buyer-seller channels. So if eBay is right in promoting softphone capability as an ecommerce transactional enabler, seems to me Amazon is missing out by not having the same option.

Something else, too. According to Nielsen/NetRatings, eBay visitors spent an average 2 hours, five minutes, 5 seconds on the site in August. Amazon vsitors spent 0 hours, 22 minutes,30 seconds.

Obvious as to why: eBay bidders, and buyers peruse, spending  lots of eyeball time in the process. And in doing so, they notice lots of ads served up.

Amazon users know what they want, buy it and get gone.

So if I am Amazon, I am thinking, "how do I keep these eyeballs around?"

I'll tell you. If you have a softphone, Amazon, they'll stay.

Don't want to build your own softphone? I know a company that not only has a softphone that works well, but they would just love to be acquired.

And Net2Phone, don't you think your shareholders would get a sweeter deal from Amazon then from - what was that other company's name again?

 

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