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Skype Unloved
Forbes ^ | 04.15.09 | Vidya Ram

Posted on 04/15/2009 9:53:29 AM PDT by nickcarraway

Having failed in its attempt to sell Skype, eBay is now poised to carve off the business via an initial public offering. That could be a gamble.

Market conditions allowing, the online-auction titan will float Skype next year, eBay chief executive John Donohoe said late on Tuesday. This suggests that eBay's apparent sale talks with Skype's Scandinavian founders, Niklas Zennstrom and Janus Friis, and three private equity groups, have broken down. The bidders had reportedly been offering eBay around $2.0 billion for the business, $600.0 million less than what the founders had sold it to eBay for in 2005. (See "Hype Over Skype.")

Donohoe's announcement could be a veiled attempt to find another bidder for the Skype; eBay has, of course, denied this. Trouble is the Internet telephony service is a tough sale. Skype might be a a popular communication tool, accounting for around 8.0% of the world's international calling according to Telegeography, but translating "eyeballs" into "revenue" has proved challenging.

Skype's customers only spend an average 11.3 cents a month on its service, compared with the typical spend of around $50 a month for a cellphone. Analysts have also doubted eBay's goal to double Skype's $551.0 million in revenue last year, to $1.0 billion. Taking Skype to the next level would require considerable capital investment, says Atlantic Equities analyst James Caldwell, and that could deter a buyer.

(Excerpt) Read more at forbes.com ...


TOPICS: Business/Economy; Computers/Internet
KEYWORDS: ebay; skype

1 posted on 04/15/2009 9:53:30 AM PDT by nickcarraway
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To: nickcarraway

It’s a wonderful service - and our only phone. (Well, we keep a pre-paid cellphone around for 911 calls and the rare vacation, but that’s about it.) If you have both a traditional landline and (reliable) high-speed internet service, ask yourself why.


2 posted on 04/15/2009 9:55:26 AM PDT by kc8ukw
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To: kc8ukw

We use the video on Skype to talk to relatives face to face. It’s free.


3 posted on 04/15/2009 9:59:57 AM PDT by lormand (Washington DC - Enemy of Freedom)
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To: nickcarraway

You can use it phone to phone, not just on the computer, and you can get a phone number from them and have calls forwarded to you all over the world. I don’t use it much but it comes in handy.
Now they have an application for the I-phone. I haven’t looked into it yet so don’t know what it entails.


4 posted on 04/15/2009 10:10:42 AM PDT by diefree
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To: kc8ukw

I have a traditional land line telephone. My internet service also is provided by the Telco. If I purchase Skype, I presume Skype assigns me a telephone number. If so, then do I lose the telephone number I already have from the Telco? Thanks.


5 posted on 04/15/2009 10:16:57 AM PDT by miele man
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To: nickcarraway; Revolting cat!; Slings and Arrows
bidders had reportedly been offering eBay around $2.0 billion for the business, $600.0 million less than what the founders had sold it to eBay for in 2005.

Yeah, but it's eBay. You've GOTTA figure there will be a couple of snipe bidders in the closing seconds...

6 posted on 04/15/2009 10:24:23 AM PDT by a fool in paradise (IRONY - we know more about the First Dog's historical papers than we do of President Barack.)
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To: ShadowAce

Ping


7 posted on 04/15/2009 10:25:18 AM PDT by nickcarraway (Are the Good Times Really Over?)
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To: nickcarraway
Until Skype changes it's horrible stance on security I'll continue to warn my customers not to use it.

Skype security and privacy concerns

Did the EU just admit Skype calls can be intercepted?

Skype: We didn't know about security issues

Security Questions Dog Skype

8 posted on 04/15/2009 10:26:33 AM PDT by Knitebane (Happily Microsoft free since 1999.)
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To: nickcarraway

My work group is spread around the world and we use Skype for one-to-one or conference calls. Works wonderfully.


9 posted on 04/15/2009 10:28:45 AM PDT by pikachu (Be alert! We need more lerts!)
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To: miele man

You will. Skype will have a range of numbers available to pick from, (in just about any area code you would like, actually), but your current number won’t be one of them.


10 posted on 04/15/2009 11:07:31 AM PDT by kc8ukw
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To: rdb3; Calvinist_Dark_Lord; GodGunsandGuts; CyberCowboy777; Salo; Bobsat; JosephW; ...

11 posted on 04/15/2009 2:01:42 PM PDT by ShadowAce (Linux -- The Ultimate Windows Service Pack)
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To: ShadowAce

Given that the government is spending $1 billion dollars to figure out how to tap skype calls, I wonder if they shouldn’t just spend $2 billion to buy it.


12 posted on 04/15/2009 3:11:33 PM PDT by gondramB
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To: diefree

Except ATT won’t allow it’s use on 3G.


13 posted on 04/15/2009 4:12:07 PM PDT by papasmurf (Save us from 0bama, I prayed. Then I heard, "the 2nd, I saved")
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To: papasmurf
Except ATT won’t allow it’s use on 3G.
But then, AT&T's US monopoly on iPhone service runs out next year, unless Apple renews it . . . which AT&T is trying to get Apple to agree to.

14 posted on 04/15/2009 4:21:33 PM PDT by conservatism_IS_compassion (The conceit of journalistic objectivity is profoundly subversive of democratic principle.)
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To: papasmurf

T-Mobile isn’t allowing it where they are the iPhone provider either.


15 posted on 04/15/2009 4:24:16 PM PDT by Mr. Blonde (You ever thought about being weird for a living?)
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To: lormand
We use the video on Skype to talk to relatives face to face. It’s free.
We use it too; it's wonderful. It does seem that there should be some charge for it. I feel like a freeloader. Even tho I and the daughter I talk to are paying for the internet bandwidth at both ends.

16 posted on 04/15/2009 4:27:07 PM PDT by conservatism_IS_compassion (The conceit of journalistic objectivity is profoundly subversive of democratic principle.)
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To: Mr. Blonde

First of all, T-Mobile does serive any US iPhone customers.

T-Mobile has no issues with SkyPe. ALL German Telecoms’ contracts prohibit the use of SkyPe and all other VoiP applications.

It’s not consistently enforced, but the ban on 3G usage it.

http://share.skype.com/sites/en/2009/04/is_deutsche_telekom_playing_an.html


17 posted on 04/15/2009 4:30:07 PM PDT by papasmurf (Save us from 0bama, I prayed. Then I heard, "the 2nd, I saved")
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To: papasmurf

Oops...

“First of all, T-Mobile does serive any US iPhone customers.”

Should read: First of all, T-Mobile does not service any US iPhone customers.

Sorry


18 posted on 04/15/2009 4:30:49 PM PDT by papasmurf (Save us from 0bama, I prayed. Then I heard, "the 2nd, I saved")
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To: miele man

It’s computer to computer which is free. Or computer to phone, low rates. Or phone to computer. Or phone to phone.

I haven’t looked at it in awhile but there are different scenarios. You only get a phone number if you want one and you pay for it.

It’s a little complicated.


19 posted on 04/15/2009 4:38:56 PM PDT by diefree
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To: papasmurf

I’m fully aware that T-Mobile isn’t the US provider of iPhones although presumably they would be next on the list to add it in the US when the exclusivity contract ends. I said where they are the provider.

Thanks for the article though. I hadn’t looked too deeply into the blocking of Skype on the phone.


20 posted on 04/15/2009 4:53:11 PM PDT by Mr. Blonde (You ever thought about being weird for a living?)
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To: Mr. Blonde

I think texting is okay on the Iphone 3G if I read skype’s page correctly.


21 posted on 04/15/2009 4:55:56 PM PDT by diefree
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To: Mr. Blonde

OK, I misunderstood. :(

FYI, My German BIL is a master hacker, cracker, and code packer. He has an iPhone, runs it on T-Mo, and he uses SkyPe and whatever else wants. He has the magic sauce. I hate him. LOL


22 posted on 04/15/2009 5:02:56 PM PDT by papasmurf (Save us from 0bama, I prayed. Then I heard, "the 2nd, I saved")
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To: lormand
While on deployment I could do video chat with my kids from various ports again for free.
It is the phone I use in my HamShack. I love it. I think I have paid $10 in the last two years for the service.
23 posted on 04/16/2009 5:16:08 AM PDT by DYngbld (I have read the back of the Book and we WIN!!!!)
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To: DYngbld
Deployment? Thank you for serving our country sir.

HamShack LOL

I'm guessing that is the mess hall?

24 posted on 04/16/2009 10:04:20 AM PDT by lormand (Paulrhoids - The hemmrhoids of American Politics)
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To: miele man
"I purchase Skype..."

For most of my calls it's free like when I talk to my kids or pass notes to them.  To talk to the states it's just a couple cents/minute and locally it's cheaper than regular phone.

Check out skype.com

25 posted on 04/17/2009 6:53:02 AM PDT by expat_panama
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