Report Has Tellme to Microsoft for $800 Million

Tellme? Try sell me.

 

The Wall St. Journal is reporting that long-rumored talks of Microsoft purchasing Mountain View, CA-based Tellme Networks might be inching closer to becoming a reality.

 

Tellme, which specializes in Web-based voice by combining Internet data and a voice interface is said to be worth upwards of $800 million to the Redmond giant, which if true, would make it one of the most expensive acquisitions ever carried out by Microsoft.

 

According to Om Malik’s blog, Microsoft is willing to place such a huge bet because the stakes in voice-activated mobile search are so high. Malik refers to a May 2006 quote by Microsoft CEO Steve Ballmer, where Ballmer tells the Wall Street Journal, “The leading edge battleground between us and Google in local search really will come on the phone.”

 

According to Malik, “…on mobile phones the search business is still up for grabs… and  with Windows Mobile growing like crazy… Tellme’s technology could make Windows Mobile phone infinitely more user friendly.”

 

Tellme is led by CEO Mike McCue, who is one of the original founders. Prior to founding Tellme, Mike worked at Netscape as Vice President of Technology. Corporate leadership also includes Sanjeev Agrawal, Tellme’s Vice President of Marketing, who prior to his current gig was the Global Director of Product Marketing at Google.

 

Tellme claims 35–40 million users each month resulting in billions of calls to hundreds of phone services. Some of Tellme’s most recognizable services and customers include 1-800-555-1212; Cingular’s 411 service; 1-800-GOFEDEX; 411 for Verizon home phones; 1-800-DOMINOS; as well as customer service and ordering for companies like Merrill Lynch, E*TRADE and American Airlines.