Skype’s Spreadsheet Looks Unimpressive, But Company’s Still A Gem

Skype is big. It?s almost certainly the largest VoIP network in the world, and perhaps even the grandest telecom entity around, too, if one is speaking strictly of the number of individuals using its software and services. Its membership currently stands at roughly 220 million.

But as far as the company?s finances are concerned, its proprietor says its not doing all that well.

What eBay valued at $2.6bn back in 2005 (so very long ago, eh?) is now being ?written down? a whopping $1.4bn to reflect its present estimated worth. In so doing, eBay will commit to pay out $530m to shareholders for, among other reasons, letting them down. The question on my mind is: Is this news bad for Skype itself?

Personally, I don?t think so. Sure, Skype hasn?t amassed billions in returns for its parent company ? it brought in revenue of $90m in Q2 2007 ? but it?s certainly grown to be a very successful enterprise, despite being far less lucrative than previously predicted. That outta be worth something, right?

Definitely. There?s no doubt that Skype has made it to the big leagues in terms of market saturation. It?s effectively done in the world of VoIP what Google has done in search. Its name is entirely ubiquitous. When people think VoIP, people think Skype. When people think free worldwide calling, people think Skype. That?s a pretty big accomplishment, wouldn?t you agree?

The problem I?ve always had with the eBay-Skype picture was that eBay was there. I never thought the two played a particularly attractive couple. It was a mismatch from the start, really. The intention of eBay?s execs in laying down a couple billion bucks for the company might?ve been good. It might?ve been a decent fit, what with the idea of sellers conversing with buyers in real-time, via voice and/or IM chat. But soon after Skype?s purchase, reality set in, and the folks running things at eBay found that few of the site?s members cared to speak with one another in such a direct way. Not having to talk with salesmen and women, and, reversely, customers, is one of the main benefits for using the website.

Thus email remained the most accepted halfway point. Besides, with various time (as in time zones) restrictions and other variables constantly at play, VoIP just doesn?t mix very well with auction and sales processes. There are exceptions, of course, but overall, eBay-Skype integration ended up a general no-go.

So here we are, the world looking at Skype?s financial returns, many thinking, ?that can?t be good….? But really, it?s fine. Skype doesn?t have to be a cash cow. Its outstanding free calling feature prevents it from amassing the kind of dough it would need to help eBay recoup its investment anyway.

Its main purpose is to connect people with one another, and it done a great job of it, throughout the world. That?s good enough for me. How about you?