Assignment:
An IPO for Skype?
The online auction giant E-Bay has announced their intention to sell their Skype division through an initial public offering (IPO). Some of you might be familiar with Skype, as they are one of the leaders in providing online video and audio conferencing services. Here is an article on this recent announcement by E-Bay:
https://files.shareholder.com/downloads/ebay/676142613x0x287046/95ba0c30-057d-4a67-859c-8cac8e7be234/EBAY_News_2009_4_14_General.pdf
After doing some research both on Skype and on online auction IPOs, write a four to five page paper answering the following question:
What type of IPO should E-Bay use to take Skype public - a traditional IPO or an online auction?
Some issues to consider in answering the above question include:
A. The type of investors Skype likely to attract
B. The lessons learned from Google and Morningstar from their auction IPOs
C. Costs and risks of each type of IPO