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July 30, 2005

Smoking the $3 billion dollar Skype pipe

finance — by TDavid @ 12:42 pm PST

It’s not a secret that I’m a huge fan of Skype, but there’s no way it’s worth $3 billion dollars. Apparently Robert Cringley is floating the rumour that there was “almost” a buyout of Skype for that ridiculous sum. The rumored buyer? Rubert Murdoch who recently paid hansomely for MySpace.

Techdirt: Going Rate for Skype Apparently Now $3 Billion

We laughed it off last week when one of Skype’s VCs said he wouldn’t consider buyout offers of less than $1 billion — a staggering amount based on a company with revenues estimated to be $10 million at the very most, but Cringely feels that Skype’s disruptive potential to incumbent telcos justifies an even higher price tag.

Long time Skype analyst, Stuart Henshall doesn’t seem impressed with the rumours.

Jeremy Wagstaff: “I love Skype, but I suppose we should steel ourselves for the possibility that it doesn’t last, at least in its present format. ”

Of course Skype won’t last in its present format, Jeremy. Rarely does anything technology oriented. A static future model would most certainly make Skype worth even less. In the nearly two years that I’ve been watching Skype, I’ve seen lots of change and that’s the one constant I’ve come to expect from them.

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