Skype: From Conception to Acquisition

skype. from conception to acquisition 2003 2004 2005 2006 2007 2000 2009 2010 2011 Skype is Connection eBay claims fees for all besnnict between the Lake Investor founded by eBay purchases Skype. eBay, Silver Skype files with the Niklas it had Zennstrom SkypeOut overvalued founders Group, Skype SEC to and Janus calls are Skype's worth. and eBay destabilize settle itigation and Joltid raise $100 Friis. ebY introduced. million the com- ovor a in IPO pany software 1 Timeline icense dispute. • Company • Software The software SkypeOut is banned in South Skype Users are Josh is invented by Ahti Heinla, releases unable to Silverman Skype acquiros Qik. version 3.0 for Windows. becomes connect to the network because of a Skype system- wide Priit Kasosalu China. CEO and Skype acquires Jotkd patents, Skype came onto the scene in 2000 and today is one of the most popular applications used to make voice and video calls over the and Jaan brings stability to Skype. qik Tallinn. (Talinn) and Zennström and Fris join Skype inves- The video call is intro- Skype relemes crash. tor group with 14% owner- Microsoft acquires Internet. Learn more about this application's amazing history. duced in late version 20 ship 2005/early 2006. Skype for $8.5 billion. for Mac. (Zonnstrom) (Fris) (Silverman) Microsoft Skype releases version 3.8 are introduced. now features for Windows eBay sells 70% of Skype to Versions 3.1 Financial History Netincome O Net revenuos (loss) 3.2 and 3.5 Skypecasts introduce various 1,000 fmillon of dolers) investors. such as: Skype Find, Skype Prime, Send Money. inclusion of Skype 5.0 is raleased, featuring 500 The number video content The com- in chat, call transfer and to focus on auto-redial. of usors pany begins group video reaches Skype launched 500 100 million. calls with video calls. up to 4 application for the IPhone. partici pants. 1000 -1,000 4 2005 2006 2007 2008 2009 2010 Skype is embedded in Internet- connected 3 Competition O Vace call O Phone cal P2) Instant messaging o Desktop sharing Fle sharing (calling n) Skype launched application widescreen for the Froo Skype-to-Skype cals and vidoo cals, call homo and cell phones, group video calls, instant messag- ing, fo sharing and more. S Skype HDTVS. More than 100 million active Android. HD Free PC-to-PC voice and video calls, and free PC-to-phone calls in North America, configured through Gmail. Google users are on Skype each month, and they log more than Voice iPhone, iPad, IPod Touch and Mac users can Apple FaceTime Skype updates the iPhone app Skype 4.0 so calls can is released, be made on the 3G maka froe video calls to one another 100 million Facebook chat Chat ono-on-ono or in a group chat. It's also supported by other instant messaging clients. minutes of cals and featuring ful-scroen videos. network. B8 GoTOMeeting XX Desktop sharing software that allows people to conference via phone or computer, chat high-quality video calling 3G Claco WebEx X Xvv Webinars that allow you to share your desktop while phone conferencing and video. HD "Sype Google Vblce and Apple FaceTime offer robust free sorvioes, whereas GoToMooting and Cioco WobEx offor paid foatures. Skype filod for an IPO in 2010, but 4 IPO and Potential Investors later announced it would be delayed until some time in 2011. In the mean- time, there wore rumors that Face book, Google and Microsoft woro each considering buying the company Why? Skype is responsible for 13% of all international phone cals and is available on a vast number of operating systams including iOs platforms and mobile devices. The acquisition of the company means the domination of a great part of the volce space, Look at how much each of them offered: Gogle Microsoft facebook $4 billion $4 billion (estimated) $8.5 billion (estimated) Skype investors were major winners in this acquisition, as they made $8.5 billion off of a $2.5 billion investment. Who are the other winners and losers? Find out: Winners and Losers Winners Losers Founders Got $1.19 billion Cisco CISCO. Got a great rival in enterprise conferencing Google Silver lake, Horowitz and CPPIB Got $4.76 billion Go gle Now Skype can grow and become more popular than ever, competing with Google Voice Bay Got $2.55 billion Index Index Vontures Got expelled from the deal ebY VENTURES Facebook T Kopt Skype off Google's hands Mike Volpi Was sued by the Skype founders and kicked out Windows Phone 7 partners Microsoft bought a company that mirrors many of its axisting products, so how will tho purchase impact Skype and the industry as a whole? The Outcome 6 Skype's Valuation Pros $8.58 (Microsoft buys Skype) 8 bilon dollors 100 Maon The tochnology wll help a number of Microsoft's products, like Windows Phone Microsoft gains By purchasing Skype, Microsoft has gained a popular service and has denied its competi tors from acquiring it. Skype's community of 100 million active $2.78 (eBay devalues Skype) members who log more than 100 milon $2.758 7, become moro $3.18 (eBay buys Skype) (ostimated value when sold to minutes each month. competitive. investors) Cons 2006 2006 2007 2008 2000 2010 2011 Now Microsoft has the opportunity to put Skype into as many platforms as possible. Wo don't know for sure how the company will do that, but you can take a look at the possibilties The Future Many worry if Skype's employeos may move on to other companios if they don't like working with Microsoft. By paying nearly $1,000 for each of Skype's active users, many wonder if Microsoft Microsoft will Anywhere screw up the purchase consequently hurting Skype. overpaid. Home (xeox KINECT Windows Phone If Skype's not for you, chock out those other Skype-liko alternativos suggestod by Focus.com: Other Alternatives Work Windows Live Hotmail Go gle jajah **.... Google Voice FaceTime and IChat Jajah Messenger : Windows Lync SightSpeed Voip Buster ........* S Exchange Server 201 ooVoo SightSpeed VoipBuster QuteCom COTBOTS Vbuzzer Qutecom Combots Microsoft Nows Contor | Business Insidor | Gigaom Cnet Reviews | AlI Things Digital | Wired | Focus about.skype.com | ebayinc.com Information provided by: 10 Sources FOCUS CREDITSCORE focus.com wwwcreditscore.net