Sabre and Skype - Synergy? Naaa!

I don't want to be the chap who rags on Sabre the whole time - but - well - I have to take another swipe at the Texas chaps.

I had obviously missed Dennis Schaal's Blog on the possible synergy that could accrue as a result of one of Sabre's owners leading the acquisition of Skype.

So here are my naysayer reasons:

1. If you really think about it - Sabre and Skype are actually counter technology companies. Skype is about free user based communication - a nextgen Communications Company if you will. Therefore if there is a lot of adoption of Skype then this will alleviate the need for travel. Thus a massive additional adoption of Skype will reduce the global need for face to face communication - thus reducing the need for travel. Speaking personally - it has saved me getting on quite a few planes. So Skype is about disinter-mediating Airlines (and other travel companies) and Telecommunication companies.

2. Silver Lake is not an overly heavy handed investor. It has taken opportunities by bringing it financial muscle to the corporations. As far as bringing its portfolio companies together - that is a bit of a pipe dream. I can't see Sabre adopting Skype in a big way. Its a bit like some of the anti-Microsoft companies who have tried to ban the use of MS Office products. (Just secretly ask an honest Google head about what they think!!!).

3. The acquisition of Skype by Silver Lake's team is not without its complications. So far there are two pretty significant lawsuits that have been filed in the proposed acquisition. Both suits stem from a degree of animosity between the original founders of Skype (remember they originally started Kazaa) and Index Ventures and one of its partners, Michelangelo Volpi.

The latest lawsuit against Index Ventures and one of its partners, Michelangelo Volpi, follows another filed this week by Skype founders Niklas Zennstrom and Janus Friis, accusing eBay and a group of potential investors, including Index Ventures, of technology theft. So don't think this one is going to just roll over and die quickly. It will be pretty nasty and will likely go a few rounds - that means the actual acquisition by Silver Lake and its consortium partners is not going to happen for quite a while.

In the mean time Skype's current owner eBay will have to soldier on. Even with their 35% residual ownership - they are not going to be very keen to spend money on doing much with Skype.

So sorry if anyone is out there thinking that Skype and Sabre make great bed fellows. I think you might want to hold off on celebrating any imminent prodigy progeny.

Cheers