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[IP] more on anti-gripe about Skype purchase





Begin forwarded message:

From: Chris Savage <chris.savage@xxxxxxxxxx>
Date: September 20, 2005 2:32:19 PM EDT
To: dave@xxxxxxxxxx
Subject: RE: [IP] anti-gripe about Skype purchase


-----Original Message-----
From: David Farber [mailto:dave@xxxxxxxxxx]
Sent: Tuesday, September 20, 2005 2:13 PM
To: Ip Ip
Subject: [IP] anti-gripe about Skype purchase
Begin forwarded message:

From: Andrew Lippman <lip@xxxxxxxxxxxxx>
Date: September 20, 2005 2:04:15 PM EDT
To: dave@xxxxxxxxxx
Cc: "David P. Reed" <dpreed@xxxxxxxx>
Subject: anti-gripe about Skype purchase

Every increase in the value or valuation of Skype or equivalent is a
decrease in the value of the telecoms.  That's the message of the
Skype purchase, and it's good news for us.  The next buyout will be
even larger.


Andy, I'm all for the (creative) destruction of the value of traditional
telecoms.  But that destruction of the other guys' value, i.e., having a
technology that essentially forces existing fixed-line networks (cable,
telco) to also offer what is today a hundred-billion-dollar industry's
worth of service for free (i.e., use DSL or cable modem for VoIP), does
not really mean that **YOUR BUSINESS** has value.

I'm not saying eBay overpaid for Skype; I don't know.  But the
destruction of telco business valuation doesn't really map to positive
valuation for Skype.

Chris S.

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