Is Skype Up For Sale?

21 thoughts on “Is Skype Up For Sale?”

  1. I think the services Om was referring to was meant to be “service providers” in the traditional sense, like voice and data providers. In my opinion, I think WebEx falls more into the SaaS category, but I agree, the sentence could’ve been worded a little more clearly 🙂

  2. Funny. I instantly thought of WebEx…
    Then I thought, damn, the IPO market is dead if Skype can’t even make it to IPO.

    I’m not necessarily a fan of Cisco, but this deal would make sense for them. Put Skype everywhere.

  3. I think it’s time for skype to repeat the same “cheat system” as ebay. Let’s Cisco by everything for 5 billions but one core component being left out so skype can come back to Cisco for licensing fee in addition of 5 billions.

  4. Actually, Cisco has been a service provider (then transitioned to enabler). First, with their Cisco Linksys One platforms a.k.a. Service Nodes (SN) [1] as well as the others here pointing out WebEx. Additionally, Cisco Eos is very much a full service solution for niche hosting requirements [2].

    However, the main difference here would be an instant addition of a full service provider play for both consumer and business. Adding Skype as an adapter to an ISR would prove to be a huge differentiator in the SMB/SME space. Though, I’d wonder if the Skype brand would filter down into Linksys offerings first or as a part of the consumer land grab in the living room for IPTV (Scientific Atlanta). Also, imagine their digesting M&A activity with Starent [3] and what Skype could mean in the mobile space as everything moves to IP.

    [1] Link
    [2] Link2
    [3] Link3

  5. When I suggested to a Cisco VP that they buy Skype he told me I was nuts, that when you really dig into the numbers 65% of Cisco’s revenue comes from telecoms carriers – why would they risk that.

    Now Google has put free calls to real phones into a browser, and the tools to remove international long-distance into some 70 million mobile phones a year (and rising), so maybe Cisco’s had a change of sack.

    Whoever gets Skype will have an asset of huge and soon-to-be-wasting potential. Cisco’s emphasis on enterprise may not be the best fit, though. I’d rather see Skype buy RingCentral and serve smaller businesses first – it would be a more natural fit, and a faster way for Skype to boost subscriber revenues from an average of around $1.70 annually to the $3-5 range where they can start to take off.

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