Daily Archives: December 18, 2006

Some Skype Numbers

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Bruce Meyerson:

TeleGeography estimates that Skype users are on track to make over 27 billion minutes of computer-to-computer calls this year, with about half of them used for international long distance (all free). While that sounds like a lot, it still represents just 4.4 percent of total international traffic in 2006, up from 2.9 percent in 2005.”

David Isenberg has more:

Even if most of these minutes are new minutes that are only there because C2C Skype is free, this is impressive — in part, because with new computer devices, e.g., open WiFi phones, it is getting hard to distinguish a C2C call from a Phone-to-Phone call. In addition, the new computerphones are erasing the ease-of-use factor that keeps us glued to RJ-11.

Details on AirTran’s Midwest Desires

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David Bond & James Ott:

A two-month exchange of letters between Leonard and Hoeksema, published in an AirTran filing with the Securities and Exchange Commission, reveals that Midwest rejected an initial AirTran proposal more than a year ago–for $4.25 per share, according to Skornicka–and that things got testy in mid-November after Hoeksema told Leonard he would present an assessment of the offer to Midwest’s board at its regular meeting on Dec. 6.

Leonard replied Nov. 22 that it was “unacceptable” for Hoeksema to wait for the board’s next regular meeting and suggested that Midwest’s management wasn’t carrying out its fiduciary duty to shareholders. He also hinted at a hostile-takeover attempt–“[O]ur passive response to your rejection of our original offer is not the pattern that you can continue to expect from us.” Hoeksema reassured Leonard Nov. 27 that Midwest wasn’t dragging its feet.

ALSO, LEONARD TOLD Hoeksema that the merged airline would “significantly increase jobs in a way that Midwest could never do under any possible scenario,” and that it would “materially improve the scope and frequency of air service in Milwaukee and Kansas City . . . far beyond anything Midwest can offer as an independent company.” Milwaukee and Kansas City are the origins or destinations of 83% and 13% of Midwest’s service, respectively.

Nice bit of digging in AirTran’s SEC filings. Nothing good will happen if the AirTran takeover occurs. Dennis McCann recently gave both a try.