Skype co-founder defends poor financials

VoIP firm needs more time to ripen, argues Zennström

Written by Tom Sanders in California

Critics have inflated expectations about Skype's ability to monetise its 220 million users, co-founder Niklas Zennström said in an interview about his departure from the firm.

"Some people may want to monetise faster, but the key is to figure out the right speed of monetisation," he told the Thomas Crampton blog.

"If you act too aggressively, there is a real risk that you will lose the huge active user base."

Zennström stepped down as chief executive of Skype on Monday, the same day on which eBay wrote off $1.4bn on the company it acquired in 2005 for $2.6bn. The VoIP firm had posted revenues of $90m in the most recent quarter.

EBay said at the time of the acquisition that it planned to tightly integrate the two services, allowing buyers and sellers to discuss auction items through a Skype connection at an additional fee.

The eBay write-off is a clear signal that the firm has been unable to meet the initial expectations.

Zennström argued that Skype's user growth is a better measure of success than its financials, claiming that the firm had taken market share from competing services.

Tags:

Further reading

Zennström quits as Skype chief exec

VoIP firm loses co-founder after two-day outage and dissapointing revenues   More...

Start-up promises worldwide local phone calls

Ireland's Cubic Telecom mixes Wi-Fi and low-cost GSM   More...

Skipi worm jumps on Skype users

Beware chat messages bearing jpegs   More...

'Greynets' waiting to snare enterprises

Consumer messaging apps leaving companies at risk   More...

Related articles

Zennström quits as Skype chief exec

VoIP firm loses co-founder after two-day outage and dissapointing revenues   More...

Jajah angry at eBay Buttons ban

VoIP firm cries foul as Buttons service is shut out   More...

EBay appoints new Skype chief exec

Josh Silverman replaces Michael van Swaaij   More...

EBay sellers to strike over fee hike

Users express outrage at changes to fee structures   More...

Do you agree?

Advertisement

Job of the week

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Hiring now on ComputingCareers:

Related IT jobs

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Advertisement

Watch

25 Jul 2008

7.85 MBPodcast Special: Views from the Valley More...

24 Jul 2008

3.68 MBSpammer jailed, Esquire e-cover, and network passwords More...

23 Jul 2008

2.99 MBSmall time security, official 'spying' requests and a spammer jail break More...

Poll

EUROPEAN E-COMMERCE

EUROPEAN E-COMMERCE

Are you happy making an online purchase from another European country?

Previous poll results

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Enter email address to edit your newsletter preferences

Spotlight

Credit card transaction

Credit card fraud rampant in the UK

Attempted frauds go unreported and ignored, analysts claim   More...

Intel

Intel rolls out new embedded line-up

System-on-a-chip offerings promise footprint and power saving   More...

Advertisement

Network cables

Tech giants collaborate on wireless HD

Another attempt at cable-free transmission in the home   More...

iPhone fever fills AT&T coffers

US provider cashes in on Apple smartphone   More...

Advertisement