Rumor: Skype4Sale? Google A Buyer?

Om Malik | Monday, November 19, 2007 | 6:58 AM PT | 22 comments

Skype, the P2P voice service that cost eBay billions of dollars, might be up for sale, according to The Guardian.

Currently in favour around London’s webbist community is the rumour that Google has been in negotiations to buy Skype, the web telephony firm, from eBay.

With most of the old Skype team — including co-founders Niklas and Janus — gone, these rumors are bound to surface. There are questions about how much more Skype can grow. In short, SkypeBay is in flux, and hence the rumors. I am checking with my sources and have emailed Skype PR as well to get more details. Stay tuned. (via)

Update: Skype spokesperson just got back in touch with what has to be the funniest denial email I have ever received. Good to see that Skype is getting a thick skin:

What would we do without rumors?! We’re sure that someone is using Skype right now to give new life to old ones and create new ones from scratch. We certainly understand it — after all, Skype is about making conversations possible. That said, we don’t comment on rumor on speculation (beyond what we’ve just said).

Update #2: Kevin points to a little known provision that might prevent any deal from happening till next year.

eBay agreed that if, on or prior to March 31, 2008, eBay sells or transfers securities representing greater than 50% of the outstanding voting power of, or economic interest in, Skype or all or substantially all of the assets of Skype and its subsidiaries, taken as a whole, eBay or Skype Lux would pay up to an additional €138,411,300, or approximately $195,159,900, in the aggregate to the Earn Out Sellers and the Earn Out Representative….

7 trackbacks so far

November 20th, 2007
2:02 AM PT

[...] | Gigaom y Guardian Tags: No TagsOtras entradas que te pueden interesar…:Linkicidad, compra y venta de [...]

November 20th, 2007
6:12 AM PT

[...] Is Skype for sale and is Google considering buying it? [...]

November 20th, 2007
9:18 AM PT

[...] provengono da fonti ufficiali. Se poi queste hanno l’autorevolezza di Guardian Unlimited e GigaOM, accettiamo volentieri il rischio del mestiere. Mal che vada si è trattato di un pettegolezzo [...]

December 9th, 2007
5:15 PM PT

[...] trying to figure out what to do with its ultra-popular but not quite profitable P2P voice service. Google was rumored to be interested in Skype, but we haven’t heard anything at all. Share/Send Sphere [...]

December 17th, 2007
10:33 PM PT

[...] Rumor: Skype4Sale? Google A Buyer? [qi:090] Skype, the P2P voice service that cost eBay billions of dollars, might be up for sale, according to The […] [...]

January 11th, 2008
5:21 AM PT
April 1st, 2008
10:05 AM PT

[...] with Google’s upcoming Android mobile phone release; however the whole thing will be a lot cheaper in March. Facebook reportedly offered to acquire Chinese social networking site Zhanzuo.com for $85 Million [...]

15 comments so far

November 19th, 2007
7:36 AM PT
yakso said:

I think its a good move on google’s side if they were to buy skype. Skype is already a very strong brand and with the new android on the horizon, it cannot get scarier for other carriers.

November 19th, 2007
9:25 AM PT
Cory said:

Can’t comment on the speculation, but I would be happy to see this acquisition occur. I think Google is a better much better steward for voice than Ebay.

November 19th, 2007
9:30 AM PT
buckpost said:

I bet Google could get Skype at a firesale price. :) You have to love the rumour mill!

Mark

November 19th, 2007
10:05 AM PT
Kevin Kelleher said:

One reason to think that any sale may not happen until at least next April is this little-noticed provision in eBay’s announcement on Skype in October.

“eBay agreed that if, on or prior to March 31, 2008, eBay sells or transfers securities representing greater than 50% of the outstanding voting power of, or economic interest in, Skype or all or substantially all of the assets of Skype and its subsidiaries, taken as a whole, eBay or Skype Lux would pay up to an additional €138,411,300, or approximately $195,159,900, in the aggregate to the Earn Out Sellers and the Earn Out Representative….”

(link)

November 19th, 2007
10:13 AM PT
jccodez said:

400 million revenue, and you think it will be a firesale? 4 billion is what Blodget is guession, and he says it could go higher with M.S. getting a whiff.

(link)

November 19th, 2007
10:20 AM PT
Rick said:

I’ve always thought the only way Skype can derive value is from Google’s ad system. It makes sense that Google either partners with or buys Skype. Buying makes more sense now that we know Google is serious about telecom.

November 19th, 2007
11:23 AM PT
Casey said:

How would this tie into the GrandCentral purchase they already made?

November 19th, 2007
11:44 AM PT
Vlado said:

Things are getting funnier by the hour. In other news “AT&T: Not Too Worried About Google Wireless”

If Skype acquisition takes place and Google Wireless plans get green light I cant stop but smile at AT&T becoming the dumbest pipe, oh forgot the mobile thing - I also meant moving pipe :)

It surely looks like a huge stretch , but just thinking of it makes me feel even better.

November 19th, 2007
11:53 AM PT
alex4comment said:

What a great quote form skype, they promoted their own product, and coyly avoided denying the rumor. It’s a brilliant quote actually. Give the person who wrote it a raise.

November 19th, 2007
4:56 PM PT
Superdana said:

According to Jesse Chan (http://fishtrain.com/2007/10/30/google-worth-more-than-rest-of-the-big-web/), as of last month, Google has “no debt, and over $13b in cash and marketable securities”. Let’s assume they can increase their debt to about 2.5 times earnings, that’s 2.5 x $4b = $10b more. So a total of $23b to invest…
And, don’t forget that Google has already been rubbing shoulders with Skype for some time now; they dove into the FON.com project hand-in-hand years ago.
My opinion: if Skype is really up for sale, Google would make for a great adoptive parent. And we all know that Skype is not done growing.

November 20th, 2007
6:17 AM PT

They should grab Skype and iSkoot along the way.

Every international mobile phone call over an Android phone could then be delivered as calltrough over Skype’s network. The local part of the call would be paid to the normal cell phone provider. The international termination, which is just few Cents, could be free and sponsored by Google’s advertising.

Skypeout would be free. Every mobile phone call would be local. Skypout on PC would be entirely free and sponsored by Adsense.

November 20th, 2007
7:02 PM PT

Skype could have been the p2p IM voip company of the world. thanks to eBay this did not happen, but okay it happened. something like skype does not belong to an auction house. something like skype belongs to the world, just like google and search for information belong to the world and not to one big auction house… Skype and Ebay are incompatible and that was proven. Telephony and communication should be free for all. The little green Skype icon should be put in the 100 dollar laptops and send to the underdeveloped countries. Communication over p2p should be free which is why Skype can never become a Telecom… Maybe Skype can regain some of it’s breath and sould by joining google. eBay could sell it to Google and get it’s losses back. Skype get it’s sould back and eBay gets it money back…

November 20th, 2007
7:05 PM PT

look at think like (link) that Use your existing Skype account for a multi-user Google Earth experience. those are cool things you can do with GE and Skype. there should more things like this.

November 20th, 2007
7:21 PM PT

here jokingly. Niklas Z. his investment company Atomica should buy Skype back and then sell it to google :)

August 18th, 2008
3:36 AM PT
HMReviews said:

This may happen because Google and Yahoo are great competitor and Yahoo have Yahoo Voice and Google dont have any such service so may be they start there own or may buy some existing one.

Skype is most popular one so may be….But dint heard anything officially about it.

Thanks

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