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Summary:

The big news of the day seemingly is eBay banning Google Checkout. Should that be a surprise? Not really – because that’s what competitors do. A sign of worry? Of course! But the real big news, is the big shake-ups going on in EBay’s management ranks, […]

The big news of the day seemingly is eBay banning Google Checkout. Should that be a surprise? Not really – because that’s what competitors do. A sign of worry? Of course! But the real big news, is the big shake-ups going on in EBay’s management ranks, indicating that things are not hunky dory with the auction giant. The stock is down 5.3% of the day – no that is not because of Google Checkout being banned – because if that was the case then the stock would be moving North.

EBay’s management shuffle–which includes the departure of PayPal President Jeff Jordan–is leaving the industry a bit concerned. UBS Investment Research analyst Benjamin Schachter calls Jordan one of the company’s best and the departure “disconcerting.” EBay’s stock fell down over a dollar and a quarter at one point, or almost 4.5% on the news.

Jordan says he’s leaving to spend more time with his family. Rajiv Dutta, President of Skype and former eBay CFO, will take over for Jordan. Alex Kazin, an 8-year eBay veteran will take over for Dutta. UBS’s Schachter says Dutta switching from Skype to PayPal after just a few months on the job is eye-brow raising.

Skype Product Manager Lenn Pryor also said this week he is moving over to eBay to be the director of eBay Mobile, and of course has good things to say about his new home: “I can say without a doubt that they are some of the smartest, hard working, and forward thinking people in the business hands down. People underestimate them, and thats a great position to be in.”

A lot of talent has left eBay in recent times. There have been reports that many old timers weren’t too thrilled about the Skype deal. The reshuffling also makes you wonder about the bench strength of eBay. Dutta, for instance, has only been on the Skype job for a little bit – and here we go again!

  1. You would think EBay would have had $2B worth of planning written in harder stone. This would concern me greatly as an investor, because the shuffle shouts messages of uncertainty or questionability. Not what I want to hear from a diluted stock.

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  2. Well, this is just the tip of iceberg. Google will face more of such competition from Microsoft and others…
    What would make sense is that Google should get serious about creating its own marketplace too (base needs to be worked upon!)

    More here

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  3. Well eBay is after all a big company and I expect it is run like one. Doing a big dilutive acquisition certainly sends a message to those inside. Guys who start firms like PayPal and Skype seem unlikely to want to work for such an outfit. The company seems to be stuck with a so-so positioning in the market and with investors. What are they?

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  4. [...] Dutta, former President of Skype and more recently a partner at private equity firm, Elevation Partners succumbed to colon cancer on [...]

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