Skype Sale

From BusinessWeek, perhaps the worst-kept secret in technology, that Skype is officially on the block, albeit with the tidbit that Morgan Stanley is running the book and an IPO is more likely than a sale:

Skype: On The Block

Skype, the rapidly growing Internet phone service, is on the block. The company, based in Luxembourg, has hired Morgan Stanley to help sell the service or take it public.

Skype has held a preliminary meeting with media giant News Corp. (NWS ). The meeting was conducted during the last few weeks, but no further talks have been held and no deal is in sight, according to one person familiar with the matter. It wasn’t immediately clear which party initiated the conversation, which was held in Europe and included executives from Skype and News Corp.’s BSkyB satellite unit. Skype is seeking in excess of $3 billion for the business.

[Update] The ubiquitous Om Malik got the Morgan “get” yesterday.