1. Presented by: Lana Peters

2. Skype: Leading VOIP Revolution & Acquisitions of Skype Free Calls over the internet using Peer-to-Peer technology & eBay and Microsoft acquisitions of Skype

3. History/Background 1995 Vocaltec Interest in Business applications was limited Revenues for VoIP services less than 1% of worldwide voice market

4. In 2003 Niklas Zennstrom CEO & Janus Friis Founded Skype Changed the telecommunications world Unlimited free calls Superior quality Free download of Peer-to-Peer software

5. Enabling Technology & Business Strategies KaZaA File-sharing internet software Architectural features P2P Low cost of maintenance Easy registration of new users “word- of- mouse” Recruiting programming talent “Supermodels not needed! We want your brain!”

6. “State-of-the-Art” Technology Firewall bypass technology Global networks Intelligent routing Security Super simple Pocket PC software/ Mobile apps

7. CompanyOffer Time Warner CableDigital phone service $39.99 a month AT&TCall Vantage $29.99 a month VerizonVoiceWing $34.95 a month VonageUnlimited phone service $24.99 a month Yahoo MessengerFree PC-to-PC among yahoo users MSM MessengerFree PC-to-PC voice communication Competitors Source: Skype: Leading the VOIP, TIM Programs at Polytechnic University

8. Revenues SkypeOut- value-added offering for fee based service Low cost international calls Partners Plantronics and Siemens High quality telephone equipment and computer hardware Marginal cost low

9. The acquisition of Skype by eBay Looking to expand their vision and opportunity eBay + PayPal + Skype = Unparalleled e-commerce and communications engine eBay bought Skype in 2005 for around $3.1 billion

10. Skype- New users invite new users EBay users PayPal Wallet EBay- Buyers & sellers meet PayPal wallet Skype users Skype-Enabled ecommerce PayPal- Sellers offer PayPal & buyers use PayPal EBay & Skype usage Skype Journal Skype Journal, this glimpse of the possible future, from the eBay Financial Analyst conference (4 May; pdf — pages 290 and 287,eBay Financial Analyst conference

11. eBay sells Skype In 2007 after it failed to produce hoped for synergies eBay sells Skype to investors led by private-equity firm Silver Lake Partners for 2.75 in 2009 A mere 18 months later….

12. The acquisition of Skype by Microsoft In May of 2011 Microsoft’s CEO Steve Ballmer buys Skype from Silver Lake Partners for $8.5 billion —the biggest in the company's 36-year history

13. Microsoft's Skype acquisition strategy Integrate Skype into everything from Xbox gaming consoles to its Office software for businesses Mobile-phone market (only 7.5% of the smartphone market in 2011)

15. Microsoft's Skype Today As of February 2013 Skype has 250 million active users What challenges might Microsoft’s Skype face in the future? Was it a smart investment?

16. Question #1 What was the record breaking amount that Microsoft bought Skype for? A. 2.75 billion B. 3.1 billion C. 8.5 billion

17. Answer:

18. Question #2 What company did Niklas Zennstrom & Janus Friis start that helped them create the peer-to-peer business model for Skype? A. Napster B. KaZaA C. iTunes D. Morpheus

19. B. KaZaA Answer:

20. Question #3 Which of the following is not a way Skype earns revenue? A. Low cost international calls B. Headsets and telephone equipment C. Monthly service fees for local calls

21. Answer:

22. Thank you The end.