Monday, October 22, 2007

Skype co-founder says forecasts overshot

Niklas Zennström, co-founder of Internet telecommunications group Skype, said on Tuesday that the business, bought by eBay, had not performed as well as anticipated in the short term.

"We had to chart the trajectory of growth and how fast that would run, (but) we found out that was a bit front-loaded," Zennström said during the annual European Technology Roundtable Exhibition (ETRE) conference in Hungary.
"We overshot, in terms of monetization," he said.

eBay said last week that it would cut as much as $1.2 billion off the $4.3 billion potential price it agreed to pay for Web-based phone-calling service Skype two years ago.

The write-down on the value of the deal came as eBay said Skype co-founders Niklas Zennström and Janus Friis had resigned as executives, and it marked a tacit admission of lackluster returns from Skype since eBay acquired it two years ago.

eBay said it had paid $530 million to Skype shareholders, including Zennström.

Story Copyright © 2007 Reuters Limited. All rights reserved.

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