Rumors and Telecommunications Jobs Swirling Around Sale of Skype, Internet Phone Service

Rumors of Skype's sale may prove to be unfounded. A recent newspaper report claimed that Skype, the telecommunications upstart, was about to be sold to the News Corporation, mogul Rupert Murdoch's media conglomerate. Now reports say this is not true.

According to a newspaper, The Independent on Sunday, News Corp. conducted talks with Skype about a possible takeover, but no such transaction is now under consideration.

Telecommunications Jobs at a Media Company?

The newspaper reported that News Corp. had approached Skype with an offer of just under $3 billion. The paper said that talks had collapsed, but added that Skype could be taken over shortly, without citing sources.

Telecommunications Career on the Internet

Skype is a web development phenomenon. Since it allows users to make free phone calls around the world on the Internet, it is regarded as one of the biggest threats to telecommunications operator jobs. Founded two years ago, Skype has more than 48 million registered users.

Skype was co-founded by Niklas Zennstrom, a Swedish businessman who also created Kazaa, the file-sharing software that allows users to download music from the Internet for free. Skype works by using a system known as voice-over Internet protocol that breaks traffic into fast-moving packets that can be sent over the Internet in the same way as e-mail messages. Several European telecommunications groups, including Deutsche Telekom, France Telecom, Swisscom and BT, have already started adopting the technology to retain customers.

A Threat to Telecommunications Careers

Skype "is worth a lot more independent," Timothy Draper, managing director of Draper Fisher Jurvetson, said in an interview with Reuters on Monday. Draper said that his company owned between 10 percent and 20 percent of Skype. Regardless of whether it remains independent, Skype will likely have a huge impact on telecommunications careers.

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About the Author

Alex Russel is a freelance writer living in Brooklyn, NY. Since graduating from Syracuse University he has worked at many different media companies in fields as diverse as film, TV, advertising, and journalism. He holds a dual bachelor's degree in English and History.