According to reports in the press, four private equity groups are backing Niklas Zennström, the founder of Skype, for a buy-back of the company from Ebay, who Zennström sold Skype to in 2005. KKR, Warburg Pincus, Providence and Elevation Partners are reportedly offering to stump up the cash.
Since Ebay paid $2.6 billion for the internet communications company, many analysts have argued that the online auction house has failed to capitalise on its purchase an develop the business. Ebay has acknowledged that it overpaid massively for Skype after writing down the value of its investsment by $1.4 billion.
Whilst Skype achieved revenues of $145 million in the last quarter of 2008, the level of profitability at the company has not been so clear due to large running costs and the ability for current parent company Ebay to absorb as its own.
With constant development Voice over IP (VOIP) services from other providers and the availability of business level VOIP systems with real telephone handsets, the long term business objectives of Skype remain a mystery.