Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Skype nabs Cisco exec for CEO slot

By Julianne Pepitone and David Goldman, staff writers


NEW YORK (CNNMoney.com) -- Internet phone service Skype has tapped Tony Bates as its new chief executive, the company announced Monday.

Bates was formerly a top executive at networking giant Cisco, where he managed the company's enterprise and service provider groups.

Bates holds nine patents and is "an expert on Internet technologies," Skype said in its announcement. Bates has served on the boards of several video and voice technology companies including YouTube, TokBox, BubbleMotion and LoveFilm.

Skype filed for a $100 million initial public offering in August. In that filing, Skype said it had generated more than $406 million in sales so far in 2010, from a customer pool that includes 560 million registered users -- up 41% from a year earlier.

But only 8 million of the 124 million customers who use Skype each month are paying customers.

Early last month, rumors swirled that Cisco (CSCO, Fortune 500) was looking to buy Skype. The blog TechCrunch, quoting a source it deemed reliable, reported that Cisco had submitted a bid to acquire Skype before the IPO was complete.

Cisco's not the only big tech company taking an interest in Skype. Google (GOOG, Fortune 500) was also rumored to be considering a bid, but antitrust concerns may have dissuaded the search giant from making an offer.

Skype's history has been a rocky one. EBay (EBAY, Fortune 500) bought the company for $2.6 billion in 2005. EBay planned to use Skype as a communication service between auction buyers and sellers, but that didn't work out as planned, and eBay sold Skype last year for for $2.75 billion to an investment group led by private equity firm Silver Lake Partners.

Skype has made headway recently in its bid for a bigger footprint in the communications market. Most notably, it landed a deal with Verizon Wireless (VZ, Fortune 500), letting Verizon customers use Skype -- instead of more-expensive Verizon minutes -- for some of their mobile voice calls. To top of page

Index Last Change % Change
Dow 21,494.48 99.72 0.47%
Nasdaq 6,293.09 27.84 0.44%
S&P 500 2,448.76 10.46 0.43%
Treasuries 2.13 -0.02 -0.79%
Data as of 10:04am ET
Company Price Change % Change
Advanced Micro Devic... 14.31 0.14 1.02%
Micron Technology In... 32.90 1.17 3.69%
Bank of America Corp... 22.97 0.15 0.66%
Chesapeake Energy Co... 4.62 0.05 1.09%
Apple Inc 148.12 1.84 1.26%
Data as of 9:49am ET
Sponsors

Sections

The Senate GOP health bill would severely cut back federal support for Medicaid, which covers 1 in 5 Americans. States would have trouble filling the gap, likely leading them to cut eligibility, funding and provider rates. More

Media and tech companies are "trying to rethink what the bundle means and how to get people to subscribe," BTIG analyst Rich Greenfield says on this week's "Reliable Sources" podcast. More

The average guest at a wedding last year spent $888 per wedding, according to a study from the Knot. For those in the wedding party, the price of being a stand-up friend was over $1,000. More