Fergie's Tech Blog

Skype Fears Microsoft, Yahoo!

Via Red Herring.

The biggest threat to Skype comes from Internet companies like Yahoo, AOL, and Microsoft’s MSN, said the CEO of the VoIP provider Sunday, noting it’s not these rivals’ technology he fears, but rather their large user base.

Of course, Niklas Zennström, who is also Luxembourg-based Skype’s founder, has less to worry about these days, now that his company can also access eBay’s 161 million registered users.

The San Jose, California-based auction house bought Skype in September for $2.6 billion in cash and stock (see eBay Acquires Skype). Potential earnings could increase the value of the deal to more than $4 billion.

But Mr. Zennström said saying “yes” to eBay was more of a matter of chemistry than anything else. His company’s new parent has a history of nurturing its acquisitions, he said, making it a good partner when it comes to growing Skype, which helped pioneer free Internet phone calls.

posted by Fergie @ 10/17/2005 07:33:00 AM