Skype has not yet posted a profit, an executive told Reuters. The company expects revenue of $60 million this year and more than $200 million in 2006, a Skype representative confirmed Monday. It is considered the market leader in nearly all of the 225 countries and independent territories where it does business, according to a company press release.
Luxembourg-based Skype, founded in 2002 by Scandinavian entrepreneurs, offers free computer-to-computer voice over Internet Protocol (VoIP) calls and low-cost connectivity between computer and landline or mobile phones. It more recently picked up for $620 million in cash. In another big-time merger, eBay acquired online payments company PayPal in 2002 for about $1.5 billion. The move, expected to be complete by the end of the fourth quarter, marks the biggest acquisition in eBay's 10-year history. It has agreed to hand over up to an extra $1.5 billion, for a total payout of more than $4 billion, if Skype meets certain financial targets by 2008, according to a presentation to investors on Monday morning.
EBay plans to buy Net telephone provider Skype in a move aimed at boosting its sales volumes and supplying seamless voice communications to its consumers.Ĭompany executives said Monday that eBay plans to pay $1.3 billion in cash and $1.3 billion in stock to the global communications company.
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