12.9.05

eBay splashes $2.6bn and buys Skype

$2.6bn / 184,924,010 = $14 - The magical equation behind the business.
eBay! splashed $14 per Skype customer - correction, per downloaded copy.

Interesting, eBay could have developed its own VoIP application, or bought one, for much less than it is paying for Skype. Even if eBay is buys more than a software application (EBay's is also acquiring Skype's user base and brand) - is it worth all that? To pay $14 per customer is nothing in most of business, but lets not forget one thing: Skype is about cheap or free phone calls. Until now, most of its customers have never paid Skype a cent, and many never will. By the way how many Skype customers use the service with any regularity?I have doubts that Skype users will be now over enthusiastic with eBay as I doubt the usefulness of Skype functionality for eBay sellers.
eBay may have plans provide sellers direct real-time communication with buyers, however merchants and buyers probably will agree ,email works very well in these situations.

Whatever angle you decide to look at this deal, you can only conclude Mr. Zennstroem made THE business of a lifetime...

2 comments:

Anonymous said...

what is the problem with skype???

Anonymous said...

There is virtually nothing wrong with Skype (I use it myself and think its great!) - the post reflects about the business between Ebay and Skype.