Skype plans $100 million initial offering

By David Goldman, staff writer


NEW YORK (CNNMoney.com) -- Skype, the Internet video phone service, is planning a $100 million initial public offering, according to a regulatory filing Monday.

The company said it would offer American depositary shares, and the company's headquarters would remain in Luxembourg.

Since EBay (EBAY, Fortune 500) sold the company in September 2009, Skype has done very well. This year, the company has generated more than $406 million in sales, with 560 million registered users -- up 41% from a year earlier. Paying users, though just a fraction of the overall user base, jumped 23% to 8.1 million from 6.6 million a year ago.

Still, Skype said an IPO can help it do better. In the filing, the company said it had achieved "significant global scale and user growth," but "the penetration of our connected and paying users is low relative to our market opportunity."

Skype made headway when it landed a deal with Verizon Wireless (VZ, Fortune 500) this year. Mobile providers had been hesitant to allow the service to be used on their networks, since Skype users would not have to pay the wireless network for the voice minutes used. But wireless companies are quickly learning that data service can be a strong revenue driver too -- good news for services like Skype and rival Google (GOOG, Fortune 500) Voice, which are starting to be embraced.

EBay bought Skype for $2.6 billion in 2005, only to sell it four years later for $2.75 billion to an investment group led by private equity firm Silver Lake Partners. The online auction company had hoped to use Skype to facilitate communication between auction buyers and sellers, but that never quite happened.

EBay actually planned an IPO for Skype, but opted for the straight sale instead.

The match of Skype and EBay may not have panned out, but the company has been a consistent revenue driver for years. EBay estimated that the Internet phone company is on track to break $1 billion in revenue by 2011. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 16,677.90 216.58 1.32%
Nasdaq 4,452.79 69.94 1.60%
S&P 500 1,950.82 23.71 1.23%
Treasuries 2.28 0.05 2.06%
Data as of 5:57pm ET
Company Price Change % Change
Apple Inc 104.83 1.84 1.79%
Bank of America Corp... 16.60 0.20 1.22%
AT&T Inc 33.66 -0.84 -2.43%
Microsoft Corp 45.02 0.64 1.44%
Facebook Inc 80.04 1.67 2.13%
Data as of 4:03pm ET

Sections

The Microsoft co-founder and billionaire also announced more than $12 million for new efforts. More

Regulators are about to reveal the results of an extensive health check of Europe's top 130 banks, indicating which may need a cash infusion. More

Using technology developed for the military and implemented in Iraq, schools have installed alarm systems that detect gunfire. More

Dressing up in crazy costumes, traveling the world, posing for photos -- and getting paid to do it. Here are journal entries from a day in the life of professional "cosplay" character, Linda Le. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.