Skype Appointing New Chief From Cisco

This is going to be a whole new thing for the Internet video and phone service Skype as they are going to have their new CEO. Techcrunch has posted a teaser article about this news and New York Times has finally named the new CEO. He is Tony Bates, a top official of Cisco Systems. He will be replacing Joshua Silverman who has been serving Skype since early 2008. He is a former eBay executive.

eBay has acquired Skype way back September 12, 2005 for $1.9B in cash. November of last year, Silver Lake Partners, a technology-focused private-equity firm, acquired a majority stake in Skype, valuing the company at $2.75 billion. As Mr. Bates acquires the leadership, the company has been looking forward to tap the public markets. They files for an initial public offering in August.

Skype has been considered to be an earning company as they were able to have a revenue amounting of $406 million through the first six months of this year. It would be a great challenge for the new CEO to earn more.

Skype has been having transactions and agreements with Avaya and there has been rumors that it might be linking to Facebook as well. Bates has been the second person who joined Skype from Cisco. First was Dr. Jonathan Rosenberg who is now Skype’s chief technology executive. These things would be a potential downfall to Cisco which has been considered to be a tough competitor of Skype. Cisco is expected to introduce a new line of lower cost video conferencing systems this week.

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