October 17, 2007

Skype's revenue at $400 million a year

As eBay reported financial results I kept my eyes open for Skype's revenue. It grew 96 % (year-on-year) to $98 million in the quarter. However in the conference call Q&A eBay CEO Meg Whitman said Skype over-monetized and kept the net margin to high. When I've read media comments surrounding the Skype team getting "only" 1/3 of the earn out, the big problem seemed to have been that Skype didn't hit the financial targets. After the impairment charge eBay values Skype, a $400 million dollar annual Internet business growing almost 100 % year-on-year, at $2 billion on its books. Even Alley Insider thinks Skype is likely worth about $4 billion.

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