The Country of Skype

Neat chart from Skype (EBAY) showing the growth in Skype calling minutes worldwide over the last few years. Accounting for 8% of the world's international calling minutes is an incredible stat.

Comments

[AlexS:]

Skype's pretty interesting. I have some technologically challenged friends who nevertheless have really opened up to Skype so they can see their grandchildren. Ebay originally bought Skype in part so they could use it with Ebay selling and buying, but I don't see where that's happened. I thought it would be a dud for them but this see-the-grandchildren stuff I think is a big winner.

Apr 02 03:19 PM

[Et tu, Brute!:]

I find it INCREDIBLY interesting that all of the sudden, there is an absolute flurry of Skype hype here on Seeking Alpha lately, and nowhere else.

Makes one wonder.

Seriously.

Apr 02 03:26 PM

[Hedged In:]

It looks as though eBay is gearing up to sell Skype. Thus the Skype-hype.

Apr 02 03:44 PM

[Wake-Up!:]

True. There is always something behind the hype when it comes to eBay.

Apr 02 04:02 PM

[Moresby:]

I am a Skype user but I do not know how it can actually make money;
If Skype is on sale..... would I buy it? No, there are lots of outfits out there competing in the market, some of them are more innovative than Skype.
MOBIVOX is one of them, just as cheap and can work from your cell phone and even has voice command.

Apr 02 04:15 PM

[Moresby:]

You are serious? Ebay paid 4billions for Skype!
What is a stupid acquisition in your opinion?


On Apr 02 03:11 PM Cetin Hakimoglu wrote:

> It was a great acquisition. Worth all the 4 billion.

Apr 02 04:17 PM

[Alex Filonov:]

Skype is great. Use it for all international calls.

Ebay is not great. I sold it lately and not coming back. Not until they learn again how to make money and increase earnings.

I wonder what Skype is doing to earnings of big telcos? AT&T, Verizon etc are making tons of money on international calls. How much of it is disappearing?

Skype is a disrupting technology. No matter how much money Skype is making, it's changing the game.

Apr 02 04:32 PM

[eBay +++:]

Why shouldn't there be hype around Skype right now? Did you see the growth patterns above?

Moresby, if you did not know Skype is already a 1 Billion in Rev Company today and is in great position to dominate VOIP. It's technology is far ahead of the competition, the quality is outstanding for VOIP. Their moving onto Mobile Phones, who else is doing that now? They'll have serious leverage if they continue to increase the lead they have.

Apr 02 06:33 PM

[Marcap:]

Indeed! I suspect that much of the hype is coming from those who directly or indirectly hold a substantial position in eBay, and are hoping that this renewed Skype Hype will resurrect eBay shares to a point where getting out will not be quite so painful. I also agree with Hedged In that eBay is gearing up to sell Skype, but I am not sure that finding a buyer willing to pay very much will be an easy task. Perhaps eBay should list it on auction. :)

As for Skype traffic increasing. That is not at all surprising given the state of the economy. Many people are trying to find new ways to save, and of course free or low-cost services often look much more attractive than traditional paid ones or even services like Vonage, depending of course on their particular needs at the time.

On Apr 02 03:26 PM Et tu, Brute! wrote:

> I find it INCREDIBLY interesting that all of the sudden, there is
> an absolute flurry of Skype hype here on Seeking Alpha lately, and
> nowhere else.
>
> Makes one wonder.
>
> Seriously.

Apr 02 07:04 PM

[EdG:]

In its last quarter Skype turned over $145m. On an annualised basis this is about $600m. Growth was reported at 26% a year and at that rate it would take 8 years to reach a turnover of $4,000m.

Personally I feel growth will accelerate as people get used to the service (which is good) and replace their landlines. Also there is the new cellphone market where users are used to paying by the minute as opposed to computer users where paying for WIFI calls takes a while to get used to: Skype to mobile and Skype to international are the best source of revenue.

In conclusion while it is debatable whether EBAY overpaid, I would definitely invest in Skype as a standalone business as it has first mover advantage.

Apr 03 08:30 AM

[scot:]

why would ebay be 'gearing up' to sell skype? skype makes them money. they have fully paid for skype already. ebay makes $2billion cash per year. they are not strapped for cash. why would you sell something that you already paid for that is making you money, and is growing at much higher rates than anything else that you own? if anything, skype's success is ebay's dumb luck, as the intended purpose for the purchase never came close to materializing. within the next five years, both paypal and skype will be making more money than ebay auctions, imo. (they probably already do, considering ebay's auctions is grouped in with ebay marketplaces, which also includes revenues from ebays stakes in online classifieds)

Apr 03 01:09 PM

[Moresby:]

Unless it is possible to call the emergency service using Skype, people will keep their land line, I am keeping my landline for this reason. I would get rid of my landline if I can be sure that my cell is always fully charged and I know where it is at all time.


On Apr 03 08:30 AM EdG wrote:

> In its last quarter Skype turned over $145m. On an annualised basis
> this is about $600m. Growth was reported at 26% a year and at that
> rate it would take 8 years to reach a turnover of $4,000m.
>
> Personally I feel growth will accelerate as people get used to the
> service (which is good) and replace their landlines. Also there is
> the new cellphone market where users are used to paying by the minute
> as opposed to computer users where paying for WIFI calls takes a
> while to get used to: Skype to mobile and Skype to international
> are the best source of revenue.
>
> In conclusion while it is debatable whether EBAY overpaid, I would
> definitely invest in Skype as a standalone business as it has first
> mover advantage.

Apr 03 05:07 PM