Print 15 comment(s) - last by tastyratz.. on Apr 15 at 2:36 PM

Skype founders want company back

Technology and internet startups often seem to come out of nowhere with meteoric success only to be snapped up by larger companies looking to make a profit from new technology. This is the circle of life online and in the technology world.

Back in 2005, eBay purchased Skype for about $1.7 billion with then CEO Meg Whitman saying that eBay believed Skype would find an audience with eBay buyers and sellers. This failed to happen and current eBay CEO John Donahoe has said that Skype has no synergies with eBay reports eWeek.

Donahoe said that eBay would do what was right for Skype and eBay -- many analysts took that statement as an indication that eBay may be interested in selling Skype. While eBay hasn’t officially stated that it is trying to sell Skype, the original founders of the Skype service, Niklas Zennstrom and Janus Friis, have reportedly contacted private equity firms in an attempt to make a bid to purchase their company back from eBay.

EBay didn’t offer comment on the rumor. Sources cited by the New York Times claim that the Skype founders are attempting to raise about $1 billion in equity from private investors to fund the purchase. An alternate method of funding the purchased according to eWeek is having eBay put up the remainder of the needed cash in the form of a seller's note in a deal that is estimated to be worth $2 billion.

Skype reportedly posted $550 million in revenue in 2008. Skype recently launched mobile software that allowed the Skype service to be used on the iPhone.

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Just out of curiosity...
By quiksilvr on 4/13/2009 2:03:48 PM , Rating: 2
How DOES Skype make money? Skype is a free program that involves free communication via the internet. Sure you can make domestic and international calls too for a small fee. Is THAT how they're doing it? I'd never think that they could make $550 MILLION solely on that. I guess a lot more people use Skype than I thought.

RE: Just out of curiosity...
By smackababy on 4/13/09, Rating: 0
RE: Just out of curiosity...
By Lifted on 4/13/2009 8:28:22 PM , Rating: 2
They want to buy skype now because skype recently started a beta program to allow businesses to route SIP calls from their PBX through skype, skype being the VOIP provider.

This is HUGE business.

The $60/year home user market is nothing compared to this.

RE: Just out of curiosity...
By Hieyeck on 4/13/2009 2:10:48 PM , Rating: 4

It's absolutely wonderful how much you can learn about their sales by reading.

RE: Just out of curiosity...
By Bainne on 4/13/2009 2:11:10 PM , Rating: 2
Skype is only free for Skype to Skype
If you want to use it in place of a landline to call other landlines or cell phones, text message or anything, you have to purchase credits (or I think they also have a subscription based model?)

Incredibly useful but it does have the downside of being used only with your PC. I think if they added a true VOIP service as well - so people could purchase regular land phones and connect that to their Skype account (like vonage)
They would have a true winner on their hands

RE: Just out of curiosity...
By tastyratz on 4/13/2009 2:22:25 PM , Rating: 2
that can already be done,
but it just does not have quite the same versatility in the home as vonage and other (better) voip providers.
IIRC there are plenty of wifi and usb wireless phones capable of using skype - I dont believe there are any affordable skype to rj45 regular land line options available right now.

RE: Just out of curiosity...
By tdktank59 on 4/13/2009 4:52:38 PM , Rating: 2
Sure there is. I got a belkin stand alone skype phone ( no computer needed ) for $80 bucks (link:;jsessionid=g...

Works great, quality was clearer than a traditional wired land line. (handset wired to the wall so not a wireless one)

RE: Just out of curiosity...
By goku on 4/14/2009 1:30:53 AM , Rating: 2
regular land line is RJ12, RJ45 is ethernet, Serial, or can be used for other proprietary purposes, much like RJ12. With this in mind however, RJ12 supports up to only 6 pins while RJ45 supports 8 pins. Land line uses 2 pins, so the RJ12 jack allows you to have up to 3 telephone lines in a single outlet.

RE: Just out of curiosity...
By Klober on 4/14/2009 11:11:10 AM , Rating: 2
Not sure where you got your info, but the standard USOC (Universal Service Order Code) for telephone jacks is either RJ11, RJ14, or RJ25, with RJ11 being the most common. :)

RE: Just out of curiosity...
By tastyratz on 4/15/2009 2:36:56 PM , Rating: 2
End result I pulled rj45 out of my better half, they are right.
Thinking the other end, input not output cable.

Phone jacks can be multiple cables, rj11 is usually what I think of when I think of phone cable.

RE: Just out of curiosity...
By nafhan on 4/13/2009 4:23:32 PM , Rating: 2
I give them $60 a year to have a home phone with a real phone number that people can call as an alternative to paying $40+ a month to Verizon...
It's not quite a replacement for a real landline (no 911 for instance), but close enough for the $420 a year it saves me.

RE: Just out of curiosity...
By gerf on 4/13/2009 6:01:05 PM , Rating: 2
I do the same thing. Everything's on a UPS too. However, I've found that no one really calls it anyway, as cells are much easier and better quality.

But for $60 a year instead of monthly mystery charges galore, it's worth it.

RE: Just out of curiosity...
By Moishe on 4/15/2009 1:47:17 PM , Rating: 2
I have a cordless Skype phone instead of a landline. I pay about $90/year for my number and unlimited domestic calling. I use the PC software a lot, but the phone is great for the fam or if I need to walk around.

That's one way they make their money.

A Cyclops could see the lack of synergy
By hmurchison on 4/13/2009 2:09:43 PM , Rating: 2
1.7 billion dollars for Skype was a most foolish decision by Whitman/eBay.

PaPal made sense...Skype did not.

By diego10arg on 4/13/2009 2:56:48 PM , Rating: 2
While I agree 100%, since that was in 05' maybe they thought that they could increase their market share/value and also their profits.

Again, we see some more Corporate Stupidity.
Just not to let the government alone.

"When an individual makes a copy of a song for himself, I suppose we can say he stole a song." -- Sony BMG attorney Jennifer Pariser
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