It's being reported that Telefonica-owned O2 has bought VoIP company Jajah in a huge buy-out.

While previous reports on the topic suggested that both Cisco and Microsoft were bidding for the Israeli start-up, it's O2 that's said to have won the bidding war with a $200 million offer.

Jajah currently has around 15 million subscribers that can make cheaper phone calls on their landline and mobile phones via its site.

So far the news has not been confirmed by O2 or Jajah - we will keep you posted.