Doug on IP Comm – An independent voice on VoIP, telecom, and IP Communication

Born-again love for Skype at eBay?

Posted on: July 23, 2009

EBay announced its quarterly financials yesterday and Skype brought in $170 million for the second quarter, a compound annual growth rate translating to 25 percent.   If this growth rate continues, it means that Skype will be bringing in around billion dollars within 24 months or less. Suddenly, kicking Skype out the door looks a lot less attractive.

Daily Finance has an interesting piece on how eBay didn’t talk about a Skype IPO during the quarterly earnings conference call. Instead, execs said they were “making progress” on separation.

Previous offers for Skype by private interests have ranged around a billion dollars — offers that now look like chump change and make eBay’s CEO looking pretty smart for turning down the bargain basement bids. Meanwhile, eBay needs to figure out if they want to continue onward with an IPO and also sort out the IP (intellectual property) issues being litigated out in England.  Skype’s founders and their software company Joltid license portions of the Skype software back to eBay.

Worst case, eBay could either reach a permanent settlement with Joltid or just buy the company — and make sure there are no hidden strings attached.  This would free up Skype to have an IPO with eBay holding a good chunk of the company and pocketing the proceeds.

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1 Response to "Born-again love for Skype at eBay?"

How could eBay pay $2.6 B for Skype and not be in control of the IP needed to make it run? What did eBay pay all of that money for? A limited license? Yikes! They should have made sure there were no hidden strings when they bought Skype the first time.

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