Skype Goes for Broke

BusinessWeek Online, 16 May 2006

The Web-calling outfit owned by eBay is offering free PC-to-phone calling in North America in order to hit growth targets.

Using Skype's bargain-basement phone service just got even cheaper. Skype customers can now make calls from personal computers to landline or wireless phones within the U.S. and Canada for free, instead of the usual 2 cents a minute. But what comes as great news for consumers may be a sign Skype's growth is falling short of its parent's expectations. The Web calling company was acquired by auction giant eBay in October for $2.6 billion.

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