Is it a real Skype IPO or PR sales stunt?

Since eBay announced the Skype IPO, it makes one wonder if the real motiviation is to attract suitors more than a sincere interest in floating Skype. Either way, eBay should get a strong offer for Skype even if they break even or eat a loss on the $2.6 billion purchase price in 2005.

Let's start with the revenue growth which is impressive for Skype. Revenue in 2007 was at $382 million and grew 44% to $551 million in 2008. Estimates for 2011 revenue put it at $1 billion. With the current economic climate, any company with this kind of growth deserves a fat premium. Furthermore, the weak global economic environment should strengthen or even accelerate end users move from traditional telco to Skype VoIP which will increase revenues dramatically.

The interesting part of Skype are the assets. The customer base is at 405 million which is about 7% of the world's population. It is estimated that 8% of all international traffic is from Skype. That is huge. Furthermore, Skype enjoys a network effect because of the free Skype to Skype calls. This is a moat for the business. I find that this would a great opportunity for Google or Microsoft to come in and grab a very valuable business. As Skype continues to grow and online video content migrates to the web, it will become a huge threat to a large chunk of traditional cable company "triple play" revenues of voice, tv & Internet. Why would anyone pay extra when I get everything through my Internet?