The Skype Deal in Numbers

by Sam on September 6, 2009

  • The investor syndicate received 65% ownership in Skype for about $1.9 billion in cash and $125 million in debt
  • New venture fund, Andreessen Horowitz invested $50 million, or 1/6th of its  fund a stake of ~2%
  • This deal valued Skype with a valuation of ~$2.75B
  • Skype has 405 million users, meaning the buyers paid about $5 per registered user
  • Registered Skype users increased by 47% in 2008 over 2007 and Skype continues to attract hundreds of thousands of new users each week
  • According to Peter Falvey of Revolution Partners Skype is likely to do revenues of between $600 million and $650 million this year
  • Based on these numbers, the deal valued Skype at about 4.5x revenues
  • During eBay’s ownership period, the investment produced a negative 6% IRR, however, it still beats the S&P 500′s negative 10% IRR during the same period with
  • eBay posted $8.54 billion in revenue in 2008 with Skype contributing a paltry $550 million, or ~$1.35 per user
  • eBay’s value as a whole has declined by ~25% per year since acquiring Skype
The Skype Deal in Numbers

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  • http://www.iphoneworkspace.com/ iPhone Freak

    Now that its taken the end consumer market by a rage, Skype will continue roping in business consumers. The recent “Skype for business” competition revealed how companies like HyperOffice (the winner) have made Skype an important part of their business.

  • http://www.behappy2day.com/ Single Maria

    Thanks for the post. I like Skype, but I don't use it very much, because it uses alot of download. In Australia, your download is limited by how much you pay. E.g. we pay $50 a month for 21gb. If we go over 21gb, it slows down to near dialup speeds. But I still love it))))

  • http://www.behappy2day.com/ Single Maria

    Thanks for the post. I like Skype, but I don't use it very much, because it uses alot of download. In Australia, your download is limited by how much you pay. E.g. we pay $50 a month for 21gb. If we go over 21gb, it slows down to near dialup speeds. But I still love it))))

  • http://www.behappy2day.com/ Single Maria

    Thanks for the post. I like Skype, but I don't use it very much, because it uses alot of download. In Australia, your download is limited by how much you pay. E.g. we pay $50 a month for 21gb. If we go over 21gb, it slows down to near dialup speeds. But I still love it))))