As the apparent courtship of Niklas Zennstrom (Skype) by Rupert Murdoch (News Corp.) rumbles on, a growing number of people (including Om Malik) are starting to wonder what the fuss is all about. Sure, Skype has been downloaded more than 145 million times and it has 45 million registered users but as Om succinctly points out, the company offers ultra-cheap long-distance service so where's the "beef" to justify a $1-billion or $3-billion purchase price? Stepping back a bit, why is Skype suddenly so interested in finding a buyer? Are its VCs drooling for a huge return? Probably. Is Skype worried about Michael Robertson's Gizmo service, which has received mixed reviews so far? Maybe if only because it demonstrates the barriers to entry are low so a Skype-killer can come out of nowhere. Does Zennstrom and partner Janus Friis want to cash out after walking away from Kazaa with little to show for their efforts? Perhaps. Has Skype been approached by potential buyers? Could be. By the way, you know Skype has really hit the mainstream when the Wharton School of Business does an extensive story on the company.
For all the talk a Skype sale or an IPO. it is also important to look at motivation. Something prompted Skype to hire Morgan Stanley to explore its options. Once you know the issue, then you can understand the subsequent actions.