Saturday, August 14, 2010

Skype IPO filings show strengths, weaknesses

As the start of an initial public offering, Skype has filed financial paperwork with the Securities and Exchange Commission. The Skype IPO has been long anticipated, though some surprising numbers were exposed within the filings. The ownership structure behind Skype could be relatively complicated, though the service itself will hopefully remain rather unchanged. Article source – Skype IPO – Information revealed, date not yet set by Personal Money Store.

Financial health of the Skype IPO

The Skype IPO is proposed at a value of about $ 100 million. The revenue and income in the Skype SEC filings worry some analysts. Skype reports $ 406 million in revenue in just the last six months. The net income of Skype was reported at only $ 13 million. With a 3 percent net margin, the business is not exactly growing easily. The nine percent of users that pay for the service pay an average of $ 96 per year.

Skype’s new ownership structure

Following the Skype IPO, the ownership structure can be complicated in comparison. The business is based in Luxemborg, but they’re offering shares in the company in American stocks. Stock holders, employees, and private investors will all be considered company owners. These 3 owners will be over Skype S.A., which will issue the stocks. These stocks will be part Skype Global Holdco, part Skype Global. These holding corporations could be split into Skype, Inc. and Springboard Finance, L.L.C. Springboard Finance, L.L.C., will own 13 operating subsidiaries, including Skype Limited, Skype Sweden and Skype Software.

The changes that might come after the Skype IPO

Skype claims that it’s First Public Offering can be used mostly to raise funds. Some corporations could be faced with fundamental changes after an IPO, though. Skype is already moving forward with the iPhone app and deals with wireless carriers. Skype’s 500 million users will end up having to wait and see what effect the IPO has, because not even the IPO date is known for sure.



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