Skype in Crossfire
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Skype’s Chances
by Andrew McCaskey
Skype Implosion
I think that there is a more than even chance that Skype will implode. And if that happens, it will be a major loss.
The news over the weekend that the two Skype founders have sued not only eBay and Sierra Partners, but ex-Joost executive Mike Volpi and a UK investment house indicate to me that this has moved way beyond a business case and into the personal.
Joost was probably one of the most highly hyped introductions in the past three or four years. Fast out of the gate, the officially santioned Hulu was dismissed as a joke. Something happened along the way, and it’s coming back to haunt the Skype transaction. Apparently, as Joost was scrambling to change from a peer-to-peer architecture (the original configuration that kept transmission bandwidth expenses low), Volpi became aware of some technical secrets that got passed along to eBay, without the knowledge or permission of Friis and Zennstrom.
Not only double crossed by a partner, but making a fortune at the same time. With all parties being as rich as kings, there’s no need to seek further gain except to fund revenge. The Skype founders (and the underlying bits for Kazaa, Morpheus and half a dozen others) have nothing they want so much as to sink Volpi. And if they have to bring down a service that keeps 400 million people in touch, they’ll do so.
That’s the game that only rich guys can play well.
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