Telecom a Giant Skype Files Initial Public Offering Documents with Securities and Exchange Commission

Online, August 10, 2010 (Newswire.com) - NASSAU- Skype has formally filed with the Securities and Exchange Commission to schedule an initial public offering of its stock. The company is looking to raise over $100 million (US) in anticipation to the IPO, which would boost the Luxembourg-based internet telephone, video calling, and instant messaging communications company's user base and revenue streams.

The money that will be raised for the IPO has been devoted to "general business purposes" Skype officials stated, pursuing company growth on all levels. Skype looks to expand its user base of both free and paid services, and boost its marketing and ad revenues, as well as expand its business service divisions.

The main source of Skype's revenue according to the SEC filing, come from its fees associated with its outward calling features and services, something the company hopes to see make forward progress moving into the public arena. The feature most associated and poised toward growth will be letting users call outside Skype domains and reach cell and land line phones.

In 2010 alone Skype has increased net revenues by over 25 percent to $406 million, up from $324.9 million in the same period of 2009. A drawback has been their decreasing net income which dropped from $22.5 million to $13.1 million this year.

After being bought by eBay in 2005 for $2.6 billion, Skype which was founded in 2003 has had a bit of a rollercoaster ride in regards to its handling. Last November 70 percent of the company was sold for $1.9 billion in cash and note to a consortium of investors led by Silver Lake in association with the Canada Pension Plan Investment board which took a 56 percent stake within Skype.
Co-Founders Janus Friis and Niklas Zennstrom still acquire 14 percent of the company, which is now valued at $2.75 billion.

Tortola Capital Analyst Robert Jacobson stated Monday evening "The deal has tremendous potential once brought to the public arena, it has had a strong track record since 2003, and its business type is one that will continue its momentum due to the shifts of technology we continue to see."

"Tortola will keep a close eye on the developments and proceedings of this IPO as it has such a tremendous potential once traded publicly" Jacobson said.

For more information please visit www.tortolacapital.com or contact James Hurst at + 36 1 1577 2098