Skype O U T

April 15, 2009

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Ebay is preparing to cut the umbilical cord and let Skype operate on its own.  An initial public offering for Skype could be held as soon as early 2010. 

The purchase of Skype by Ebay was widely seen as a bad move on the part of former Ebay CEO, Meg Whitman.  The two companies were simply a bad fit for each other, and Ebay paid at least a billion dollars too much for the company. 

Skype can likely hold its own as a stand alone company.  Of course, news of Skype’s impending release, may also bring suitors to Ebay’s door. 

Skype has largely been seen as treading water since its acquisition by Ebay for 2.6 billion in 2005.  However, the company has recently made moves to break into the small business space with call center application partnerships and the beta of a new SIP Trunking product. 

Skype is far from a dead company and would likely be able to stand alone or make a potential acquisition target for any of a number of companies looking to branch into the VoIP space.

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