Tuesday, July 17, 2007

Reliance acquires Yipes

Actually, its Flag Telecom that did the actual acquisition of Yipes - but Flag is owned by Reliance. I was not planning to blog about this, but I found a post at Venture Beat, which prompted me to post a word on it. The company is into corporate ethernet services.

Venture Beat almost heaves a sigh of relief on this acquisition. Many others had tried and failed, until Crosslink Capital managed a turnaround and it has now been picked up by Reliance.

Reliance communication is using Flag well, especially for the calling cards for the Indian (probably pan Asian) commuity etc., though I am not sure they are doing too much more with it but with Yipes, it has killed two birds with one stone. I can sort of see how this fits in the Reliance model. Reliance provides infrastructure for companies in India, Flag is the link between India and the US and Yipes provides infrastructure in the US. Now, think offshoring network management, providing global networks and theres a lot of juice that can extracted out of this... (This is purely my 2 paisa, so dont hold me for it, but it sounds logical). Smart!

No comments: