Yahoo! Buys Dialpad - not Skype

Yahoo Inc. said Tuesday it had acquired DialPad Communications Inc., a 6-year-old company whose software lets people to place calls over the Internet for a fraction of the cost of regular telephone service.

The companies would not release financial details of the deal, which closed Monday.

[AP]

Dialpad, based in Milpitas, raised a 6M round in March 02 and another undisclosed round in July 04. Investors include Serome Tech, SS Soft, and individuals.

Skype was probably too expensive.