Skype - A Heavy Dose Of Crazy News

July 31, 2009

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What if you paid billions of dollars for a company, only to find out that you didn’t own the license for the product?  That’s just what Skype has learned, and as they warned in a recent SEC filing, it could result in the shutdown of Skype services. 

How does one pay a kings ransom for a company and end up in a sticky situation such as this?  Stupidity on the part of Ebay and greed and hostility on the part of Skype’s founders Niklas Zennstrom and Janus Friis.  Zennstrom and Friis claim that Skype doesn’t own the license to the core technology behind the service which Ebay paid BILLIONS for in 2005.   And they are threatening that Skype has breached their agreement and don’t have the right to continue to use the license. 

You’ve got to wonder if  Ebay even bothered to hire lawyers when they purchased Skype.  Would they not have made 100% sure that they owned the customers, software, AND technology in a transaction costing an enormous amount of money?  Or were they in such a rush to over-pay for a technology they didn’t understand that all rationality flew out the window? 

What makes all of this even more interesting is that Zennstrom and Friis’ moves are threatening Skype’s planned IPO in 2010.  Unless Skype can lock down the concerns regarding the license, who will want to jump into an IPO with a company in jeopardy of shutting down? 

The whole thing is a sickening mess and it is the 40 million Skype users who will suffer most in this debacle. 

Skype has sued Zennstrom and Friis’ company, Joltid, and the battle will soon play out in British courts.  However, to hedge their bets in the event of a legal defeat, Skype is also considering the development of replacement software for their service - though unlikely that they would be able to do so in time. 

There are fingers to point at all involved in this ridiculous battle, but one does have to wonder what Zennstrom and Friis think they are still entitled to in regard to Skype, since it is widely believed they were overpaid by billions for Skype to begin with.  Attempting to extract even more from Ebay, just as they prepare to spin Sype off into its own company is dirty trickery.  And some are speculating if this isn’t all a game to undo the IPO and force Ebay into selling Skype back to Zennstrom and Friis at Skypes new, and much lower, valuation. 

None of this can be good for Joltid’s reputation.  Who would want do business with Zennstrom and Friis these days?

If you can’t reach me by Skype, at least you’ll know why!

Written by Todd · Filed Under Business, VoIP 

Comments

One Response to “Skype - A Heavy Dose Of Crazy News”

  1. Technologically Aware on August 17th, 2009 5:01 am

    GOVERNMENT REFORM OF CELLULAR TELECOMMUNICATION COMPANIES
    AT&T, VERIZON, T-MOBILE, SPRINT, ETC

    We are tired of corporate America mobile cellular companies asking us to make a commitment to their company when they have no loyalty to, us, their customers. As American consumers we go to cell phone companies for service, not for equipment. Branding another manufacturer’s equipment is just another way for them to bind us into contractual agreements and, to charge us additional monies to use the full features of the equipment, as designed by the original cell phone manufacturer, in an “a la carte” manner.

    We need better consumer protection against leveraging our credit rating and worthiness, if, we should become un-employed during the duration of such a commitment, on such a product.

    Therefore, we are asking for legislation that allows us to:

    • Purchase our own equipment directly from cell phone manufacturers or without making two year commitments or any.
    • Allow us to switch telecommunication service providers without penalty or credit sacrifice.
    • Make it easy for us to move our existing telephone numbers to whichever company we choose.
    • Advertise which telecommunication companies provide the best coverage in our area, on a specified website.
    • Prevent cell phone companies from “piece mealing” services by features that were part of the original cell phone design by the manufacturer.
    • Stop cell phone providers from adding additional charges to our bills utilizing abstract names and means.
    • Giving us a clear cut way to report cell phone providers who fleece their customers, for immediate remedy, and, for better consumer credit protection.
    • Prevent telecommunication companies from designing specialized plans, specific, to certain cell phone manufacturers to abstract more monthly service fees.

    Keep this circulating

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