71 Comments

Summary:

Update: So the deed is done – $4.1 billion. EBay will pay $1.3 billion in cash and $1.3 billion in stock for the online communications company. It will make a further payout of up to $1.5 billion if certain financial targets are met, Reuters reports. Charlie […]

Update: So the deed is done – $4.1 billion. EBay will pay $1.3 billion in cash and $1.3 billion in stock for the online communications company. It will make a further payout of up to $1.5 billion if certain financial targets are met, Reuters reports. Charlie Sierra calculates: “So at 50m downloads, that’s $52/download, or $26 In CASH per download.” Downloads, are the new “Pageviews” it seems! ;-) Also that works out to about $20 million/Skype employee – which is ten times what Cisco paid at the top of the bubble when it bought companies.

A few quick thoughts before I get to a long analysis. It is a tactical admission that the fraud on eBay is so huge, that the company had to spend considerable amount of dollars to do something about it. I don’t think, Skype will be the white knight for eBay – which has been facing executive exodus and general loss of market momentum. I mean, if you can put up a website, and buy Google adwords, you are taking eBay out of the equation. Will SKype help prevent that shift? Not sure, it will.

A few months ago, I wrote, Mr. Metcalfe Meet Market Reality – a piece that highlighted that eBay’s natural growth days might be over. This is proof the company, which is floundering a bit, is looking for new markets. I don’t think this is as much about voice as it is a quest to get a new set of users. Also what does it say about eBay – the company that buys Skype after Yahoo, Google and others had passed on it?

Stock Markets don’t like the fact that the deal will slice a “cent per share” off eBay’s earnings about a cent per share until the end of 2006, adds Reuters. Stocks down 1.81 percent to $37.93 after skidding 4% last week when the rumors first emerged. Still big up to Skype investors – Mangrove Capital Partners, Draper Fisher Jurvetson, Bessemer Venture Partners and Index Ventures – especially DFJ who have hit a “Barry Bonds” style homerun with this sale.

Here is Andy, Jeff Pulver, Jon Arnold and Mark Evans take on this. James Enck’s succinct summary is a must read.

Business Week reports that EBay is hosting an investor call at 5 am pacific time tomorrow morning – which they call unusual. Is this the eBay-Skype announcement? FT has a story saying the deal is in the works for $4 billion or change. “Honestly, I still don’t see the logic at anything near that price, but it could be we’ll find out shortly what eBay has up its sleeve,” writes BusinessWeek’s Rob Hoff. Me neither – it is a strange acquisition, if that indeed is the case. Yet another proof, in SV there is a sucker on every exit! More of my opinion, and what others think!

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  1. If this is Skype….

    Did someone call Mark Cuban in for some deal making? Who else could sell a company with hardly any assets or revenue for multiple billions? I just typed broadcast.com into FireFox and what did I see? A redirect to Yahoo.com. There is nothing left.

    I think that goes down as the most expensive redirect ever–$5.7 billion.

  2. Nicely put mr. gales. very nicely put.

  3. Look we may quibble about the actual price, but the fact is that skype does indeed have a VERY, VERY, VERY valuable asset.

    Secondly, an Ebay purchase makes helluva alot more sense than Yahoo, Murdoch or even Google.

    If the above is not intuitively obvious, allow me a few more hints.

    Who does eBay do business with? Who does their PayPal product do business with? Thousands and thousands of sellers, and millions of buyers. That my friends means super low CPGA and churn, and greater levels of integration/service for all eBay partners. Plus, to paraphrase ZZ-Top, skype is world-wide.

    The deal to buy skype, if that is indeed what the CC is about, is no-doubt predicated on three things:
    1) The actual NPV of skype sometime into the (near?) future, which is much less than $4B.
    2) The tie-in benefits, etc. with its core auction business.
    3) The tie-in benefits with Paypal.

    Ebay already has an internal ARPU figure for each tier of major repeat sellers. Question is what’s the NPV of boosting just that eBay ARPU another $5-10/mo in cashflow and greater lock-in, or as Buffett would say a wider moat. Whats the value of grabbing a some subscribers from the millions of buyers…

    PS. This is most definitely a STOCK deal, no way Meg’s board will allow her to dump $4B of cash, so that alone is a huge mitigating term.

    The only question I have is: Why isn’t Bezo’s in on this action? Think of the recent explosion of used book sellers who piggyback on top of amazon.com.

    Is Amazon asleep at the wheel? Jeff wake up, buddy.

  4. Om,

    I just though of a new valuation metric:
    $$$/download (hey its 3am and I’m abit punchy, vbg)

    I just now read the article and price as reported is $2.6B, half cash (which is pretty bold).

    So at 50m downloads, thats ~$52/download, or ~$26 CASH/download.

    The thing is, Skype was always designed from the get-go with voice being just another software application, but what’s different with Vonage/SunRocket/Comcast/Verizon/etc is the open API and the vision that subscribers would buy a bundle of software services, not merely different commodity pipes.

    Compare this vision with the RBOC/MSO’s triple/quad-play strategy which basically bundles different pipes, all of which just push bits in the end.

  5. Digital Media Review » eBay about to announce Skype acquisition Monday, September 12, 2005

    [...] In what promises to be a sad day for eBay investors, Om Malik is connecting the dots on an immiment announcement of the eBay acquisition of Skype: Business Week reports that EBay is hosting an investor call at 5 am pacific time tomorrow morning – which they call unusual. Is this the eBay-Skype announcement? FT has a story saying the deal is in the works for $4 billion or change. [...]

  6. This is strategic and defensive.

    They can’t afford to let YHOO or GOOG dominate a segment of the internet that they might need to leverage in the future. The specifics of those needs don’t need to be fully thought out by eBay. They just know that they can’t afford to miss the boat.

    And, for that, eBay will pay billions for Skype. If they don’t, they will end up losing billions in the future.

    God forbid that eBay miss the VOIP boat and have to rely on Yahoo or Google as a partner to provide VOIP service/integration.

  7. Connected Internet News | Broadband Mobile Gaming News Monday, September 12, 2005

    eBay Holding Investor Call Tomorrow – To Announce Skype Deal?

    Apparently eBay have scheduled an unusua investor call at 5am pacific
    time which I think is 1pm GMT, which may be to announce a deal with
    Skype.

    Figures of £3-4 billion are
    being suggested.  This will be one of the craziest deals ever i…

  8. Skype Bought for $4.1 Billion! — Alec Saunders .LOG Monday, September 12, 2005

    [...] Om Malik reported late last night that reporters have been told EBay will be hosting a 5 AM PST conference call on Tuesday to cover an announcement from two hours earlier. MarketWatch at 5 AM this morning posted a story with this quote from Meg Whitman: eBay said the Skype service would be integrated into its ecommerce business, greasing the wheels of its online marketplace by making it easier for buyers and sellers to communicate. Meg Whitman, eBay’s chief executive officer, said that communications was "at the heart of ecommerce and community," and that the acquisition would create "an extraordinarily powerful environment for business on the net." [...]

  9. It’s done. Check the news. $2.6 billion, with an additional $1.5 billion “earn out” by 2008.

  10. It’s done. Check the news. $2.6 billion, with an additional $1.5 billion “earn out” by 2008.

  11. It’s done. Check the news. $2.6 billion, with an additional $1.5 billion “earn out” by 2008.

  12. Skype Bought for $4.1 Billion! — Alec Saunders .LOG Monday, September 12, 2005

    [...] Om Malik reported late last night that reporters have been told EBay will be hosting a 5 AM PST conference call to cover an announcement from two hours earlier. MarketWatch at 5 AM this morning posted a story with this quote from Meg Whitman: eBay said the Skype service would be integrated into its ecommerce business, greasing the wheels of its online marketplace by making it easier for buyers and sellers to communicate. Meg Whitman, eBay’s chief executive officer, said that communications was "at the heart of ecommerce and community," and that the acquisition would create "an extraordinarily powerful environment for business on the net." [...]

  13. How about $2.6B in cash and stock. Wow! What happens when an open source equivalent of Skype comes around?

  14. Now that we know it’s eBay, could we say that the Skype founders have ridden piracy to billions of dollars of profit? Skype became popular not because it was an original idea (regular IM clients do voice-chat and Net2Phone did PC-to-Phone calling years before Skype was a dream) but because it was decent software being promoted by the Kazaa folks. What better way to pimp software than by promoting it with one of the most downloaded software packages ever?

    Kazaa was only popular because of the piracy, people even stuck with the spyware because of all the free copyrighted content. And since I believe Skype only got popular because of Kazaa, Niklas Zennström and Janus Friis have ridden piracy to billions in profit. Not bad!

  15. No, we can’t say that. I don’t know of many people who associate Skype with Kazaa when they need to call someone and save money. Could we say that Gips had a big factor in the success of Skype? Yes, as you said, Voip has been around for years. But it wasn’t until Skype took the Gips technology and created a monster with it.

  16. Ever heard of Webex/NetMeeting? Skype can be the WebEx like meeting & conferencing platform for Ebay sellers and buyers. If I am a Ebay seller, a WebEx like platform is difficult to afford. Ebay can sell this technology to its users to demonstrate the products, provide support and direct marketing across the world. It can even position them as B2B and not just B2C. This service doesn’t have to be free as many are speculating.

  17. Rick: After Skype was launched it was marketed as the new thing “From the Kazaa team” and it was how many many earlier adopters found out about it. I found out about it the day of launch because of its association with Kazaa. There is actually a big synergy between the two usergroups (free PC-to-PC VoIP and P2P). I wonder what percentage of Skype users have never downloaded Kazaa… I bet only a small share (like yourself and other VoIP gurus).

  18. You are correct. They got a lot of Kazaa coattail, but they created Skype on its own merits, not on Kazaa. We got to give them credit for the good job they did. They did things that others didn’t. For one, they took Gips and ran with it. MS, AOL, Google are following. Skype led.

  19. Bruce Landon’s Weblog for Students Monday, September 12, 2005

    VoIP

  20. Op-Ed :: eBay Did Indeed Just Buy Skype. :: September :: 2005 Monday, September 12, 2005

    [...] Om Malik has links. Good ones too. Comments » [...]

  21. so does this mean ebay powersellers will have to hire their own call centers to answer their new volumes of skype calls?

    speaking on skype w/a seller isn’t going to prevent them from lying to you. (unless we come up with skype-lie detector plugins ;-) ). I mean people lie to each other’s faces all the time. although if the guy speaking to you over skype claims his name is john smith from utah, and he can barely speak english, that might be your tip-off that he’s a crook…

  22. RatcliffeBlog—Mitch’s Open Notebook Monday, September 12, 2005

    Skype: Paypal for people talking

    Om Malik’s Broadband Blog » SkypeBay done for $4.1 Billion.: So the deed is done – $4.1 billion. EBay will pay $1.3 billion in cash and $1.3 billion in stock for the online communications company. It will make a…

  23. Ebay Buys Skype, No One is Suprised

    Finally, we can all calm down with the speculations about who will buy Skype. It’s eBay. It’s a deal that makes those guys $4.1billion USD richer. 2.6 BILLION upfront richer. I bet they’ll be laughing all the way to the…

  24. This deal reeks of the bubble. Like ebay’s other stupid purchase, shopping.com for 690 million, this is a way way overvalued deal. That’s a metric ass load of cash they put on the table for skype. What’s the justification?

    Ebay will look to introduce skype to paypal, ebay and its related services as time goes on. So why are investors worried? Competition is tough in the US VOIP market and to introduce skype to its emerging markets, it will have to mess around with the murky politics and state owned long distance telephone operators. For eg, in India, skype, vonage,xyz are not legal. How will ebay be introduce this in India legally? Any answers?

  25. http://www.tmcnet.com/usubmit/2005/sep/1181000.htm
    Maybe they should have purchased Xten, a public softphone maker, who they could have had for a few tens of millions. Heck they could have paid double that company’s market cap and still received a good deal. Partner with a service provider, and take a penny or two off the traffic generated with eBay’s universe and voila!

  26. Maybe eBay overpaid. Maybe not. What matters more is the potential ROI and I think it’s huge.

    eBay skims pennies. I’m betting offering the option of voice access between buyers and sellers is going to become a part of those pesky little fees eBay are masters at applying. And I’m also betting that there are other revenue opportunites we can’t see at the minute that eBay understands clearly. They aren’t buying Skype only to offer a more convenient service to their existing user base. They’re doing it to make money and believe they can.

  27. Huge assumption that Yahoo and Google “passed on it”. I am not quite sure that was the way the story played out here…

  28. I dont understand why people are speculating that ebay bought skype to just add voice cababilities to auctions .If they wanted to do it they could have developed the technology inhouse or heck buy some small voip company for a few millions.

    I think eBay paid mainly for the brand and the network skype brings… Is 4.1 billion a bit too much ?, i dont know only time can tell

  29. Ab:

    Can you please tell me on what basis do you say that Skype, Vonage et al are illegal? The recommendation put out by TRAI makes it clear that end-to-end VoIP and interconnecting to PSTN outside the country by any one are legal. Even interconnecting to Indian PSTN can be done under a license. So it will be useful if you can provide legitimate reference to your claim.

  30. The figure of downloads is incorrect. Skype has had over 150 mill downloads.

  31. Atemloser.Blogger Monday, September 12, 2005

    Great news for google, isnt’t it?

  32. Henrik Torstensson Monday, September 12, 2005

    Basically nitpicking, but Skype has been downloaded 150+ million times. Skype has 50+ million registered users. So eBay is paying 52 dollars per registered user, or more likely circa 100 dollars per active user.

  33. its not the voip nor just the users. its the desktop presence. ebay is the only mega internet player without one.

  34. i think what skype said, that got turned back
    into registered users again, is that they had
    50+ million names registered. (the caveat
    is how many distinct parties)

  35. My thoughts here:

    ….a toilet company too – yeah! yeah! Almost all eBay users use toilets. The purchase price of that one could be calulated at the same valuation – cost per download….:)

    http://bbenz.typepad.com/softwaresoapbox/2005/09/skypebay_done_f.html

  36. I think Charlie Sierra is absolutely correct. By bunding Skype eBay further sets itself apart from anyone wishing to encroach on its core business. The cost of entry to get into the online auction business has just increased, as you now have to offer something as good as Skype to compete on a level playing field with eBay. That factor alone significantly increases eBay’s NPV. In addition, tight integration between the Skype client and eBay’s auctions may lead to an increased usage of both services. For example, what if the Skype client had tracker functionality for any auctions the user were participating in? A good reason to always have Skype running if you are already an eBay user and a way to get more out of eBay if you are already a Skype user. If one is a heavy eBay user, he will get a lot of exposure to using Skype and this will be better marketing than what Vonage has spends hundreds of millions on anually.

  37. i’m really not much of business guy, so bear this in mind as a big fat grain of salt with what follows.

    I’m trying to understand why eBay would buy Skype as a “platform”? I can see why eBay would be attracted to the myriad of Skype users. But the platform itself? Come-on.

    If eBay was interested in building out a VoIP conferencing platform for its members, it might as well have built out its own SIP-based platform, it really isn’t all that hard, or bought out one the emerging SIP-based players, such as Robertson’s Gizmo Project. As a technology investment looking out for the future, SIP is far more elegant *and* promising with viral interoperability, than Skype’s hodge-podge of proprietary technologies, to which it happens to expose an API. You don’t need an API when you deal with open protocols. SIP is an open protocol and works with a set of open protocols. The Skype API is the result of their realizing late in the game that they needed to interoperate to stay alive. They do have a huge critical mass of users. They’ve got a very good *product* that works insanely (for some level of insanely well) well within the confines of its ecosystem. But do they really have a compelling *platform*? Is eBay really going to be able to build anything useful *on top* of Skype?

  38. i do buy other arguments made regarding “desktop presence” (Mik) and integrating eBay listings and notifications into Skype (Jesse).

    But this to me points again to the strength of the large established Skype user base, rather than Skype as a compelling platform. Skype happens to be this “thing” that sits on many users’ desktops, and that alone is valuable, more so than “Skype as a VoIP platform”.

    I’m just wondering how well Skype is going to keep doing, when most everybody else has migrated to SIP-based alternatives?

  39. Forget the price tag; it just doesn’t make sense. Ironically, EBay must not like shopping around. They should have checked their own website for alternatives before blowing billions.

    The synergies are enormous. Voip is not just POTS anymore. It’s all about communicating anywhere, anytime over anything about anything anyone wants to sell to anyone else.

    Total paradigm shift for telecom anals. Telecom is no longer; it’s now Anycom.

    Jesus is still Lord.
    And the days are still short.
    Believe and be saved.

  40. technoLAHgy v0.15c – (Haven’t really been) Monitoring Malaysian Inventions Monday, September 12, 2005

    Rype

    Skype for USD$4.1 billion. Hrm, I better start swimming, mountain biking and shooting lasers into my digital cameras. Oh wait, already doing the first. : ) Update: “48% of Skype revenues generated in Europe, 25% of Skype users are business users, 1.9b…

  41. Roundup: Skype / EBay Stories — Alec Saunders .LOG Monday, September 12, 2005

    [...] Om Malik: SkypeBay done for $4.1 Billion. "that works out to about $20 million/Skype employee – which is ten times what Cisco paid at the top of the bubble when it bought companies." About 10 times the going rate for Microsoft too. [...]

  42. Jonathan Boutelle’s home on the net Monday, September 12, 2005

    eBay and Skype: two great tastes that taste great together

    As everyone knows by now, eBay has agreed to acquire Skype. A lot of smart people are saying this is a dumb move, while others think it was brilliant. I’m happy to see skepticism (it’s a good antidote to the…

  43. VisibleBits Design Studio | SkypE-Bay Monday, September 12, 2005

    [...] My favorite writer for Business 2.0, Om Malik, has some of his own analysis at GigaOm. Even he has a lot of speculation, coming from someone that normally has a good vision of the tech market. Jeff Pulver (co-founder of Vonage) always has his clever input on the voip market as well. Both have great points, but still no solid answers. [...]

  44. Alex Barnett blog Tuesday, September 13, 2005

    eBay agrees to buy Skype, but why?

    It was only a couple of weeks I wrote of Skype’s need to ‘get on with it':

    “ZDNet and WSJ are…

  45. Aswath: If you have wsj access, see the this article in the asian section: Online Phone Services
    Spur Backlash in China (sep 12)

    State Telecom Giant Blocks
    Users From PC Calling
    Offered by Skype, Others

    Skype Technologies SA and other Internet-telephony companies could face difficulties in one of their most promising markets, as a Chinese state-owned phone company appears to be moving to bar Chinese users from some of the companies’ services.
    …….
    Chinese government regulations classify Internet telephony as “basic telecommunications” businesses, which its rules dictate can be offered only by China’s six major telecom carriers. The operator in China Telecom’s Shenzhen office said the company’s policy was implemented because Internet phone service has “disturbed the telecom market order.” She said customers who violate the policy have their service cut off and can’t have it restored unless they sign a pledge not to use it again.”

    I hope I’ve clarified the point. This problem is pretty similar to what it will face when it enters India in a organized way.

  46. It’s a Paypal Injection Mechanism-
    Skype will be used to catalyze the real opportunity for Ebay which is the bundling of Paypal merchant services into Skype. At EBay Developer’s conference a few weeks back Jeff Jordan talked about Paypal’s opportunities- both on and off-ebay. He estimated the off-Ebay opportunity as an addressable market for merchant services of $300 BILLION in 56 countries. Any Skype user will be getting not only voice capability but also essentially banking/merchant services bundled in. With only 1% overlap in current users of Skype and Ebay/Paypal that sounds like a decent way to get new folks onto both platforms. Capturing an annuity stream of transactions via Paypal makes those users worth a bit more than some people think (though I have no idea how to quantify it).

  47. Maybe they should have purchased Xten, a public softphone maker, who they could have had for a few tens of millions. Heck they could have paid double that company’s market cap and still received a good deal. Partner with a service provider, and take a penny or two off the traffic generated with eBay’s universe and voila!

    http://www.tmcnet.com/usubmit/2005/sep/1181000.htm

  48. I wonder whether eBay saw this item on their own site before they made their offer for Skpye:
    http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=5807543926

    The seller, http://www.whitephone.com, says:
    “Using this product you can compete directly with Skype, and go a stage further with your own community-building announcements system, video mail broadcasts, and many more unique features.”

    Seems that eBay could have saved $2bn to $4bn?

  49. End of an Era? eBay to purchase Skype

    So the deed is done – $4.1 billion. eBay will pay $1.3 billion in cash and $1.3 billion in stock for the online communications company. It will make a further payout of up to $1.5 billion if certain financial targets are met, Reuters reports. Charlie Sier

  50. Om Malik’s Broadband Blog » Return of Danny Rimer Saturday, September 17, 2005

    [...] So why bring up Rimer now? Well, you heard of this little deal where eBay (supremely overpaid) for a little company called Skype… Rimer was one of the investors in Skype. Unlike his more vocal and visible counterpart, Tim Draper from the first of Draper Fisher Jurvetson, Rimer has been keeping it on the D-L. Index and DJF had co-led the $18.8 million investment in Skype. That it has been a home run, well that’s like saying Barry Bonds is just another San Francisco Giant. [...]

  51. Om Malik on Broadband : » 2005 – Year of the Broadband Saturday, December 31, 2005

    [...] The fast pipe helped spur some head scratching deals, and at the same time have helped drive down the price of voice to near zero. [...]

  52. Om Malik on Broadband : » Skype Revenues – $318,000 a day Wednesday, January 18, 2006

    [...] EBay just reported its earnings, and while rest of the data doesn’t intrigue me as much, the Skype data is pretty telling. In the 78 days eBay has owned Skype, the company did sales of $24.8 million. No mention of profits in the press release, but they do point out that nearly 87% of the total sales are from outside of the US. At $24.8 million over seventy eight days, it works out to about $116 million, a shade ahead of $100 million annual run-rate they hoped for when the SkyeBay deal was announced. Looks pretty good, unless you start slicing and dicing it differently. That’s about $318,000 a day in sales for Skype. Being snarky for a minute, at that rate, the sales-to-deal-price ($2.6 billion) parity will take about 8176 days. Roughly 22 years! (Of course they will grow their sales, I am just having some fun here ) [...]

  53. Why would eBay pay for something that any free instant messaging program can do?

  54. Will EMC’s Mozy Move Deflate Online Storage StartUps? « GigaOM Sunday, September 23, 2007

    [...] Systems (CSCO) spent lavishly for Cerent, eBay (EBAY) opened its checkbook for Skype, and Google (GOOG) ponied up for YouTube. Now EMC Corp. (EMC) has reportedly bought Salt Lake [...]

  55. Let’s Justify Facebook’s $300 per user Valuation – GigaOM Thursday, March 13, 2008

    [...] say we bring out a crazy deal where the buying company admitted they overpaid. When eBay shelled out $4.1 billion for Skype it paid about $52 per [...]

  56. Email is the ultimate ‘beacon’ for FaceBook and all the other soc-nets too! « Serendipty Sunday, March 23, 2008

    [...] eBay shelled out $4.1 billion for Skype, it paid about $52 per user. In July 2005, News Corp. purchased the parent of MySpace for $580 [...]

  57. Will eBay Hang Up on Sype? – GigaOM Friday, April 18, 2008

    [...] would allow eBay users to click-to-call during auctions. Why this feature was worth $4.1 billion puzzled the media and analysts alike. Skype is growing, but eBay hasn’t figured out what to do with the growth for the [...]

  58. The anti-portfolio Wednesday, April 23, 2008

    [...] and Bessemer has cashed huge checks from early investments in companies like Staples, Verisign and Skype. But, they admit, other decisions have been less lucrative. This long and storied history has [...]

  59. Video Makes Skype 4.0 Grow Bigger, Wider – GigaOM Tuesday, June 17, 2008

    [...] The company is also working on introducing features such as auto-redial, call transfer, and most importantly, the ability to send money. I guess they figured out how to integrate eBay’s PayPal with Skype. Now wasn’t that worth spending billions of dollars on? [...]

  60. Helping Twitter make money – Security and the Net Thursday, October 16, 2008

    [...] the company to eBay. If they were interested in Skype, surely Twitter would offer them better value for money. Instant twitter updates when you receive a [...]

  61. NEG Meg The Series « NegMeg Wednesday, February 18, 2009

    [...] SkypeBay done for $4.1 Billion Om Malik, September 11 2005 [...]

  62. Why is eBay buying Skype? @ The markets, One Byte at a Time Friday, February 20, 2009

    [...] trying to figure out the strategy behind eBay’s purchase of Skype for $4.1 billion, but then again… with Google and Microsoft’s recent VoIP acquisitions, the news is not [...]

  63. eBay buys Skype | Locuras del web Saturday, February 21, 2009

    [...] Om Malik says: I don’t think, Skype will be the white knight for eBay — which has been facing [...]

  64. Will JoltID Turn EBay’ Dream of Skype IPO Into a Nightmare? Tuesday, April 14, 2009

    [...] an IPO, sometime in 2010. Making the announcement and admitting to Meg Whitman’s $3.1 billion blunder, Donahue said: “But it’s clear that Skype has limited synergies with eBay and PayPal. [...]

  65. eBay CEO: $2B Valuation for Skype Is “Low” Thursday, May 7, 2009

    [...] course, eBay spent $2.6 billion on Skype, so one can’t expect Donahoe to publicly admit that they got suckered and [...]

  66. Skype Sale Nears: Why eBay Shareholders Should Be Mad Tuesday, September 1, 2009

    [...] EBay bought Skype in 2005 for $3.1 billion but a series of management blunders turned a fast growing startup into a cesspool of mediocrity and bureaucratic infighting. It was as if someone opened the fuel tank on a rocket heading to the moon. It was only last year when Josh Silverman was appointed chief executive, sanity returned to Skype. With the calling service on track to bring in $600 million in revenues in 2009 (though not sure how much profit it makes for eBay) the company is a likely candidate for a public offering when the IPO window opens, perhaps in 2010. [...]

  67. Mi otro blog… » Blog Archive » eBay vende el 65% de Skype Wednesday, September 2, 2009

    [...] esta venta puede verse como una operación desastrosa para eBay, ya  que compró Skype en 2005 por $4.1B ($1.3B en efectivo,  $1.3B en acciones de eBay y $1.5B si se lograb…, lo cierto es que, tal y como se apunta en Techcrunch, que la operación no ha sido tan mala como [...]

  68. NEG Meg The Series 2005 « NegMeg Wednesday, September 30, 2009

    [...] SkypeBay done for $4.1 Billion Om Malik, September 11 2005 [...]

  69. Skype, Founders Settlement in the Works? Sunday, November 1, 2009

    [...] September 11, 2005: eBay buys Skype for $4.1 billion. [...]

  70. Interview: Index Ventures Says This Is Not a Bubble: Tech News and Analysis « Tuesday, March 1, 2011

    [...] have clear revenue models — and many of them have gone south after selling. Just look at Skype, bought by eBay for $4.1 billion, before the deal was written down, mired in legalities and then ended in the company being sold [...]

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