Skyfire acquires Steel browser maker kolbysoft on way to Webkit-powered awesomeness!

Skyfire is still the only mobile web browser in the world that’s capable of streaming all sorts of embedded videos from the web straight to your smartphone, and it’s going to get even better. Skyfire has just announced that it has acquired kolbysoft, makers of the Webkit-based Android Steel browser, in a bid to bring the strength of Skyfire’s streaming video technology to a Webkit browser built for the Android platform. The Skyfire browser has only been available on Windows Mobile and Symbian, but with today’s announcement, Skyfire is officially getting friendly with Android.

Skyfire is able to stream rich media to their browser by routing all web traffic through Skyfire’s “cloud.” By using server farms to handle all the heavy processing, Skyfire can send bandwidth-optimized webpages to your mobile phone, complete with moving pictures and other rich media. And, with the Steel browser in tow, Skyfire will soon be making a bid for the Android space.

Skyfire CEO Jeff Glueck told IntoMobile that the impetus behind the kolbysoft acquisition was Skyfire’s desire to bring Skyfire technology into a Webkit-based browser. “Webkit has a number of gaps where skyfire’s technology can offer a tremendous leap forward,” said Glueck, explaining that “Webkit browsers still don’t allow users to access rich media and embedded video, whether its Flash, Silverlight or Quicktime. Skyfire’s cloud computing technology can add to the Webkit ecosystem.”

Steel browser users, rest assured that Skyfire will not be shuttering your favorite Android browser. Users will be allowed to continue using Steel, and will be offered an upgrade to Skyfire when the Android version hits the Android Market.

We can’t wait to see what this hybrid Skyfire/Webkit browser will look like.

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