Skype: Through All It's Mergers

In: Business and Management

Submitted By cperu
Words 7212
Pages 29
SKYPE
In the hands of eBay, Silver Lake, and Microsoft
Larry Fan, Aly Kassim-Lakha, Betty Liu, Cristina Peruyera, and Kimberly Yao
December 12th, 2014 Professor Emilie Feldman MGMT 249

Fan, Kassim-Lahka, Liu, Peruyera & Yao | MGMT 249

Executive Summary Skype was founded to build and provide a telecommunications application, and despite many changes in ownership, its core business has not drastically changed over the years. Over the past decade, Skype has seemingly thrived to varying degrees under the leadership of eBay, Silver Lake Partners, and now Microsoft. The different visions each acquirer had for Skype and its integration made all the difference in Skype’s value at each stage. In the following paper, we will investigate how each of the three companies chose to acquire, integrate, oversee, and potentially divest Skype, and thus unlocking or creating value through the process. By analyzing information databases and news archives regarding Skype as well as utilizing course frameworks and scholarly papers discussing merger and acquisitions, we will argue that Microsoft has been more successful in integrating Skype than eBay has, though Skype’s long-term success in the hands of Microsoft remains uncertain. In addition, Silver Lake Partners was able to unlock value in Skype using a different set of perspectives as a financial acquirer. Throughout it all, Skype has continued to innovate and provide free services to millions of users globally.

Introduction In 2002, Scandinavian entrepreneurs Janus Friis and Niklas Zennstrom founded Skype, which offered free, high-quality computer-to-computer calls between private users (Aamoth, 2011), and in the course of doing so, revolutionized the Voice over IP (VoIP) provider industry. At the time, the VoIP industry of providing “real-time communication services that deliver communication through a web-based…...

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