Skype IPO Filings Show Advantages, Weak Points
Just one year after spinning off from EBay, Skype has filed the original paperwork with the SEC for an initial public offering. The Skype IPO has been long expected, though some surprising numbers were exposed within the filings. After the IPO, the ownership structure of Skype can be complicated — though users are hoping that Skype will keep the no cost services it has become popular for.
Financial health of the Skype IPO
There is an estimate that the Skype IPO could be worth $ 100 million or more. The Skype SEC filings revealed revenue and income that worries some analysts. Skype reports $ 406 million in revenue in just the last six months. Skype reported its net income at $ 13 million . With a 3 percent net margin, the business isn’t exactly growing easily. Only about 9 percent of Skype users really pay for the service, though they average $ 96 per year.
The structure behind Skype’s ownership
Once the Skype IPO is completed, the ownership structure can be relatively intricate. American shares are being offered in the business, even though it is based in Luxemborg. Private investors and employees are both going to be considered owners of the business as well. These three groups will own stock in Skype S.A.,. This business will own somewhat equal parts Skype Global Holdco and Skype Global. These two holding companies will be split – into Skype, Inc. and Springboard Finance, L.L.C.. Springboard Finance, L.L.C., will own and operate 13 operating businesses like Skype Software and Skype Sweden .
The changes that might come following the Skype IPO
Operating funds are the goal of the Skype IPO. Offering stocks can, at times, fundamentally change a business. The iPhone application is proving popular, and Skype is already making deals with many 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.
Tags: app developer, free phone service, Skype, Skype IPO
