Skype looking strong with Q1 revenue jump

VoIP service provider Skype has been considered the smudge on eBay's reputation since the very day eBay acquired it. After eBay took an earnings charge on the cost of its acquisition last year, the act only hardened the belief that the Skype deal was a failure. When a new CEO moved in at eBay with a mission to re-evaluate everything (paraphrasing his actual words), rumors circulated--and persist--that Skype could be sold to Google or another company.

However, Skype appears to be anything but a burden, having reported first quarter revenue of $126 million, a 61 percent increase over the same quarter last year. Subscriber growth continues to astound as well, as Skype added 33 million users during the quarter, and now has about 309 million worldwide. Despite the success, it is possible eBay still may find that Skype just is not a good fit for its business, and may end up selling it, but regardless of what happens, it is getting more difficult by the quarter to call this particular buyout a bust.

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