Two months ago or so Om predicted that Teleo would be bought by Microsoft. Well that day has arrived.
The announcement, which is meaningless in the long run, indicates that the Teleo technology will be part of MSN Messenger. I think that's just some of MSFT's stock in trade of throwing the competition off in the wrong direction. I actually think more of the Teleo thought process will be used with Live Communications Server than with MSN.
I don't think Skype or Yahoo are scared by this move either. But Vonage and others using click to dial may have to be, if any of the intellectual property that MSFT now own includes that.