Skype CEO steps down. This can mean only one thing: eBay ain't happy
eBay said this morning that Skype CEO Niklas Zennstrom has stepped down.
Zennstrom, who will remain as the non-executive chairman of Sikype, is being replaced on an interim basis by Michael van Swaaij, eBay’s Chief Strategy Officer.
An active search is being conducted for Zennsrom's replacement.
These executive actions are, no doubt, related to the fac that eBay also announced that it has paid (approximately $530 million) to settle all of its future obligations under the earn-out agreement signed with certain Skype shareholders when eBay acquired Skype in 2005.
The earn-out agreement provided for payments of up to $1,700 million based upon specific active user, revenue and gross profit targets that were to be achieved in 2008 and the first half of 2009.
In a statement, eBay said it beleives eBay believes this "payment is reasonable given the progress and anticipated rapid growth of Skype’s active user base."
That sounds like spin to me. If you are growing "rapidly," you don't unceremoniously replace your CEO and enforce a financial settlement.
"Well, duh" department: something about Skype's numbers, as presumably will be reflected in eBay's 3Q earnings, made eBay CEO Meg Whitman have a cow. That, and she may feel the integration between eBay and Skype has reached far short of its collaborative potential.
Where's the integration? Have the limited SkypeMe buttons popping up on eBay's auction listings come anywhere near justifying the $2.6 billion purchase price?
If I am right, look for Skype to eventually-sooner rather than later- be operated more as an eBay division- with all major decisions needed to be funelled through eBay- rather than this semi-autonomous entity it has been up until now.
Andy doesn't discount this view, but does believe that eBay could be preparing Skype for a new life as a tracking stock, or even a separately traded stock launched with an Initial Public Offering.
I think either of these courses could be eventualities. Then, there's always Niklas' needing to spend more time on tv-oriented video site Joost, which he co-founded. But if this was the primary driver, why the financials in today's announcement?
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