Skype files for IPO

Skype, which expects to trade on Nasdaq, has drawn a large number of customers with free computer-to-computer services while a small percentage of its customers use Skype to make calls to traditional phones at discounted rates.

Atlantic Equities analyst Chris Watts said Skype's owners may see an IPO filing as a way to publicize the company in the hope that a strategic investor buys it outright.
Watts said that while Skype's growth has been impressive, investors eyeing publicly traded shares would be cautious about its prospects for revenue growth.

"That's the strongest point they have but it's also their problem," Watts said. "It's a very, very difficult business to value. The issue for most people is going to be: yes, they've got a very substantial subscriber base but a lot of their subscribers just aren't generating a lot of revenue." - Source