Skype

Guide Note:

Skype is a free internet telephony network, on which users can chat live or make phone calls through their internet connection (much like Vonage's VoIP service). In addition to the free services that only allow Skype users to call each other there are several premium services available as well. These services include the ability to dial a standard land line and make international calls. Premium users can also accept incoming calls from any phone as part of the "Skype-In" package. The Skype founders are known for their other startups that include Kazaa and Joost.

Fast Facts:

1. Founded: Niklas Zennstrom and Janus Friis
2. CEO: Josh Silverman
3. Generated $126 million in 2008 Q1
4. In 2007 after a Microsoft Windows update Skype incurred several days of technical issues, the problems were caused by millions of user rebooting their computers to complete the Microsoft update

Ebay Acquisition

In September of 2005 it was announced that eBay would be acquiring Skype for 2.6 billion dollars. The deal was for half cash, half stock and represents one of the larger acquisitions in recent dotcom history. By bringing Skype into the eBay family it was thought it could be used as communication tool between auctioneers and consumers. In April of 2008 eBay CEO John Donahoe hinted that eBay may consider selling Skype if it can not find a good synergy between the service and its existing portfolio.