Inside sources have told Reuters that an acquisition of Skype by Facebook may be very possible.
Skype, once bought by eBay but ultimately returned to its owners, is expected to launch an IPO this year, which would raise roughly $1 billion, according to analysts.
But Facebook may be looking to outright buy the company for $3 to $4 billion, Reuters' sources suggest.
The discussions are in early stages, and it is not clear which option the companies favor, the first two sources said. Although an IPO is still in the cards for the second half of 2011, Skype remains in strategic discussions with other companies, two of the sources said.
Unsurprisingly, neither company has commented on the speculation.