Skype Dices! It Minces! It Chops!

EBay’s press release on buying Skype contains a Vegomatic-y (It dices! It minces! It chops!) justification for its purchase of Skype:

– Skype will streamline and improve communications between buyers and sellers as it is integrated into the eBay marketplace.

– In addition to eBay’s current transaction-based fees, ecommerce communications could be monetized on a pay-per-call basis through Skype.

– A PayPal wallet associated with each Skype account could make it much easier for users to pay for Skype fee-based services, adding to the number of PayPal accounts and increasing payment volume.

– Skype can help expand the eBay and PayPal global footprint by providing buyers and sellers in emerging ecommerce markets, such as China, India, and Russia, with a more personal way to communicate online.

– Consumers in markets where eBay currently has a limited presence, such as Japan and Scandinavia, can learn about eBay and PayPal through Skype. Skype can also help streamline cross-border trading and communications.

Meg half-full sorts will point to the rich complementarity inherent in the acquisition; Meg’s critics will say she has just pulled off a confused Carly-style diversionary tactic at a company’s cusp . I’m leaning slightly (and reluctantly) toward the side of half-full, but I’d cheerfully be pulled back to the dark side by readers.


  1. she didnt want another google on her back. She is the top payer of google ads today.

  2. Even if you assume that all those synergies are present — which is a big if — I still don’t see how you get to $2.6-billion, let alone $4.1-billion. Looks like a Hail Mary pass to me.

  3. Skype eBay = Deal! $1.3B cash $1.3 stock $1.5 earn-out = $4.1B!

    Reuters Eric Auchard hasjust reported that eBay has made a run after Skype after all, and has put a consideration that would total $4.1B if earn-out conditions are met. This is a massive deal: eBay is spending about half of its cash reserve to acquire …

  4. Maybe they figured out there’s no more growth in their business and decided to change industries. $2.6 billion buys you a lot of Skype ads! Go short!

  5. Couldn’t they have hooked up with Google Talk for much less?

  6. it’s a “show-me” acquisition alright…some solace I guess to be drawn from the results of their acquisition of Paypal three years ago.


    FOR WHOM THE BELLS USED TO TOLL Many in the financial world, are scratching their heads at first the rumored, and then confirmed acquisition of Skype by eBay. Representative of these is VC Fred Wilson, who voiced his doubts a few days ago and again tod…

  8. Martin Tibbitts says:

    Ebay could have built these features for less than a million. What a waste.
    Martin Tibbitts