Skype is set free

The sale of Skype to a group of private investors presents the company with both a challenge and an opportunity.

The challenge is to transform its popularity as a platform for free voice and video calls from computers and smartphones into greater profits.

The opportunity is to return to its roots, akin to its mode in the pre-eBay days, and get into startup mode.  This should translate into greater innovation and far more flexibility as well as the ability to operate with less disclosure (as a public company, eBay’s investments in developing new technologies, for example, would be disclosed in public filings).  The company can also grant new and existing employees stock options, something that can improve retention of key employees and help bring in new ones.

Rumors of a sale have been around for a while (we speculated on this last April).  Somewhat surprisingly, the buyer didn’t turn out to be a traditional telecommunications company with a vision for the future.  Another surprise was that the sale didn’t include Skype’s founders, who own key intellectual property that is currently part of a licensing dispute.

Regardless, as an independent, Skype itself may turn out to be a next generation traditional telecommunications company – if it can find a way to leverage its current worldwide base into a profitable one.

David M. Goldes is the president of Basex.

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