Internet telephone company Skype officially filed an initial public offering for $100 million dollars in American depository shares. Skype is the top service provider for no cost video phone calls.
Skype provides free software for making telephone calls, video conferencing and file sharing over the internet. According to a recent report, Skype has approximately 560 million registered users. Very few people use their paid services. Only 1.8 million of those users are paying customers.
The application filed with the SEC states the company plans to increase revenue by selling premium services. The money raised from the IPO will help grow the business. Skype plans to sell premium group video calling, enforce licenses and increase marketing to strengthen its presence among small business customers.
In February, Skype revealed a mobile application for Verizon Wireless. Skype also produced applications for Apple Inc.’s iPhone. LG, Panasonic and Samsung Electronics have contracts in place to add Skype technology into their products.
Many on Wall Street fear Skype’s public offering will mimic the catastrophic public offering by Vonage four years ago. The Vonage public offering made shares available directly to consumers.
A Silicon Valley banker said that, “Investors are just skeptical about secular growth coming from any technology sector.” Analysts are reluctant to place a value on the IPO because of unstable stock prices in the tech sector.What people are talking about.Story about skype icon.