Skype IPO on the rocks?

Posted Jun 26th 2009 10:30AM by Tom Taulli
Filed under: Law, eBay (EBAY), Initial Public Offerings

So far this year, there are hopeful signs for the IPO market. Some of the standout offerings include Changyou (NASDAQ: CYOU) and Medidata (NASDAQ: MDSO).

Now, investors are waiting for other deals. Facebook? Twitter?

Or, how about Skype? In fact, the website's parent, eBay (NASDAQ: EBAY), has indicated its intention to take it public.

However, there may be a snag coming from Skype's founders: Niklas Zennstrom and Janus Friis, according to Bloomberg.com.

The problem is a classic case of the complications for modern-day technology. The founders still have ownership in the key technologies of the Skype platform, and they are threatening to take these back and perhaps even stop the service. Why? The claim is that eBay has violated a licensing contract. Currently, the dispute is being fought through a lawsuit.

Yes, it's brinksmanship, but it may actually work.

While litigation is a normal thing in tech circles, this dispute may instill fears with investors. If so, it could be tough to pull off the public offering.

So, it would not be a surprise to see some type of settlement, which may put even more money in the pockets of Skype's founders.

Tom Taulli is the author of various books, including The Complete M&A Handbook and the founder of BizEquity, a free online business valuation tool for small businesses. You can reach him at his personal blog.

Tags: ebay, inthenews, IPO, Skype