

I think that you could make the argument that a similarly ridiculous metric is being applied here." “There was a time back in '99 where you were worth a million for every engineer you had working for you, and you had to just go out and hire to get your valuation up. “If market caps are defined by number of subscribers, then we're back in the good old days,” he says.

The reputed Skype valuation brought back memories of late 90s “irrational exuberance” for 8x8 Inc. Vonage has distanced itself from direct comparisons to Skype, saying that Vonage intends to be a regulatory-compliant replacement for standard phone service, where Skype is a “second service.” Vonage’s Jeffery Citron declined to weigh in on the issue (see Vonage Raises Another $200M).

“Most of them are just using it as an audio instant messenger, so is $3 billion the right price to pay for that? If that is the price, then I’m certainly excited about the valuations that companies like Nuvio and Vonage might bring." Talley says Skype’s pay services are not used by the majority of its users (see Skype Lowers Call Costs). Kansas-based Nuvio provides a consumer VOIP service similar to Vonage. “That seems like a lot of money for a customer base that doesn’t generate revenue,” sniffs Nuvio Corp. To manage the matchmaking and to help raise funds.ĭoes the $3 billion figure reflect the value of the company? Light Reading asked some VOIP industry sources and found that, while Skype impresses, the fact that it could command a $3 billion price caused a little backbiting (see VOIP Subscriber Numbers Soar). Rumors also persist that the firm has hired Morgan Stanley Several reports say that Skype is ready to sell out, and that meetings took place in Europe last month in which Rupert Murdoch’s News Corp. Reports of a Skype Technologies SA sale have permeated VOIP circles in recent days, and the $3 billion price tag being bandied about reminds some of headier days (see Skype Rules North American VOIP).
