EBay Mulling Skype Sale 82
MaineCoasts writes "The Financial Times reports that eBay's new CEO is evaluating a sale of Skype if new ways cannot be found for the fast-growing service to support its core e-commerce business. EBay reported earlier this week that Skype had a 61 percent increase in first-quarter revenue over the same quarter last year and now has 309 million users worldwide."
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It seems to offer a valuable service at a reasonable rate, although I've only ever been a customer.
Sometimes an idea, like a jet engine, needs a few thousands RPMs to get it up to speed.
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EBay was actively fighting PayPal from being used on listings until they realized that it would just be easier to buy PayPal than to fight them and have their own payment service. Perhaps you remember Billpoint (eBay Payments)? EBay also promoted an Escrow service and a Western Union auction paym
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No way ... (Score:5, Insightful)
Re:No way ... (Score:4, Insightful)
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Re:No way ... (Score:5, Interesting)
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Live voice auctions? (Score:4, Insightful)
Good (Score:4, Insightful)
I dunno. Maybe they were going to flog off switchboard hardware for a dime a piece.
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Plus $1000 shipping & handling
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I don't know - mix this with presence information in ebay accounts, and when looking at an auction, you get a link to the seller's skype for text and/or voice chat.
That's a good argument for partnering with a VoIP/telephony company, but not really for owning one outright. In fact, the last few decades of accepted business-management wisdom advises exactly against this sort of acquisition. Just because you have a need for something, doesn't mean you're necessarily the best person to supply it, even to yourself.
Telephony was nowhere near eBay's core competency, and the match never looked that great. And even if they were hell-bent on getting into VoIP, there were pr
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No Bid (Score:1)
Re:No Bid (Score:5, Insightful)
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You don't need Skype for voice communications (Score:5, Insightful)
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Whether the info is true is another story of course.
Retarded CEOs (Score:5, Interesting)
Let's get this straight. You have a thriving subsidiary with strong growth but it isn't sufficiently enmeshed with your core business to make you happy as the CEO or eBay. Your options are to:
It seems to me like this guy is looking to bail out on eBay in the next couple of years and wants to have a successful divestiture to feather his cap. This is typical of the sort of short sighted bullshit that publicly traded American companies go through nowadays because the overpaid people running them don't care about anything other than their own career track.
Re:Retarded CEOs (Score:5, Insightful)
Ebay moved away from it's core business by acquiring Skype in the first place. It's not supporting their core business so it only makes sense to spin the business unit out into it's own business probably via public stock offering, thus infusing ebay with a bushel of cash. This allows them to get back to the core business and focus on expanding ebay not figuring out how to integrate a business that just doesn't fit.
Re:Retarded CEOs (Score:4, Insightful)
If i was in the trade of making silver, and then one day i buy a magic pot that makes gold, id keep the bot, let it cary on making gold, and id keep making silver. This has the bonus that if someday i fancy making silold or gilver i can.
Plus ebay doesnt go great with skype but paypal does, why dont they just keep sticking paypal to stuff. Online auctions were nice, but there no point putting all your eggs in the one basket, gumtree/facebook, is becoming a convenient way to get rid of junk without the haste of ebay, on-line shops are getting competitive, and froogle is getting good at finding what you want. Ebay isnt going to die but it wont keep growing forever.
There is plenty of areas where knowledge from ebay would be useful in setting up a new project with skype & paypal. For example
Renting rooms & flats, here in London, nobody wants to go through estate agents (because they're all ****s), but gumtree still looks and feels unprofesional, the search isnt very good and putting your phone number on the web isnt the best idea. solution an ebay like listing site that you link to a skype number, and has the bonus that tenants can set up a paypal direct pay so you dont even have to collect rent.
they have three great products, they dont need to link them.
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But the damn thing was so heavy and it didn't do squat against plate mail.
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There are exceptions to this, but in general, most companies are highly specialized. They do something, they do it (hopefully) well, and that's how they make money. Everything they do is in furtherance of that goal: what's called in businesspeak a "core competency."
EBay's core competency isn't the same as Skype's. It doesn't really make sense for them to be in the same organization: with such differing strengths, it would be difficul
Re:Retarded CEOs (Score:5, Insightful)
If the value of Skype is worth more in terms of selling off to some other sucker investors than it is keeping it in the hopes that it might be worth something some day, then it's better to sell it off.
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No, pretty sure they said profitable. Although, mistakes like that are understandable, if you didn't RTFA.
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I guess they might make that back if they hold on to it for a long time, but I sort of doubt it.
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So if I understand this correctly... (Score:4, Funny)
I am awed by the clarity of his reasoning!
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Re:So if I understand this correctly... (Score:5, Insightful)
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He has to talk about how profitable it is, or else nobody will buy it. Who'd want it otherwise? He's pretty much required to say all that stuff.
eBay should list it on eBay. (Score:5, Funny)
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The window is closing fast. (Score:3, Insightful)
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No, you get it with marketing and loose promises.
But you sure can lose a user base as big as Skype's because you don't play ball with open source and open standards.
Re:The window is closing fast. (Score:4, Funny)
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Re:The window is closing fast. (Score:5, Informative)
Let's hope they don't and Skype dies a quiet death!
We can all use SIP and not pay tribute for a proprietary protocol.. and we can use whatever client we want rather than an annoying proprietary one.
Skype's business model is lock-in.. Die Die Die!
Someone had to say it, this *is* slashdot..
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Not sure why skype was bought in the first place (Score:5, Informative)
British Telecom is doing a lot with the Internet, has a lot of telecommunications experience and has the infrastructure. The BBC has experience with codec development, real-time delivery of multimedia to large numbers of people, and the problem of digital audio over unreliable networks. Timesys, in the US, has enormous experience with real-time systems and the problems of real-time computer-based applications, although I'm not sure if they have much experience with real-time networking. They might. Cisco, now they have Scientific Atlanta, have not only vast computer networking experience but experience with all kinds of high-performance network systems. Again, since cable television systems must be able to decode the signal fast enough, Cisco must have people skilled in high-performance codec development.
Any of these companies would seem to be better partners than eBay. None of them will likely buy it, but I could see Skype faring better with any of them. They have skills and experience eBay would not have had that relate to what Skype is doing.
This does raise an interesting question, though. If ISPs are highly concerned about the bandwidth requirements to deliver the BBC's iPlayer content (given that that can be delivered best-effort, whereas Skype's cannot) to the point where they think the BBC should pay extra for that bandwidth, and given that ISPs are keen to ditch neutralty and charge providers extra just to get best-effort, it follows Skype will be in for some hefty ISP bills in the future. Is it possible that such extra costs would make Internet telephony on any commercial scale completely impractical?
(To get the customer base to be profitable, Skype would need users worldwide, but they'd be paying every ISP that served at least one customer of theirs plus the backbone providers for both the extra bandwith and the high-end quality of service needed, as well as their own ISP bills. Assuming bandwith charges are equal to QoS charges, that means they pay twice what any other Internet service pays for the same effective level of service. That means they'd need twice as many users as a profitable e-commerce business, assuming service is a major cost. Tha means ramping up to that level would also be very expensive.)
total failure (Score:4, Interesting)
The day eBay bought Skype their share price went through the floor. It has never recovered.
Just as well Meg Whitman is already leaving, they really should have fired her a long time ago.
Re:total failure (Score:4, Informative)
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Yahoo business Skype stock price chart [yahoo.com]
Ebay skype acquisition completion press release, October 14 2005 [ebay.com]
SIPIT (Score:2)
Just like a Chevy Chase talk show.... (Score:2)
If I am not mistaken.... (Score:4, Funny)
On ebay.
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If they want it to be successful... (Score:1)
Look at Apple, they put a "i" in front of everything and just look at how successful they are.
Problem solved.
Skype's savior (Score:3, Insightful)
My prediction is that Skype will not only become more popular but also more profitable. Their savior will come in the form of the new mobile computing platform. UMPC [engadget.com] or MID [engadget.com] + 3G/3.5G/4G/WiMAX + Skype.
Once battery life increases (atom [intel.com]) and mobile networks improve, techies will quickly adopt this platform as their primary phones but they'll still need to make and receive calls to others with PSTN phones.
SIP, not Skype (Score:3, Informative)
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Additionally, many countries including the US have poor mobile Internet connections that can't support the heavier G.711 codec required by many SIP providers. You're lucky to have a 3.5G connection.
Don't forget, most of these UMPCs and MIDs are real PCs (X86) with high resolution screen
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In the US, you can get the Nokia N95, in Europe, the ones to get are the N82, N78, and N96.
The Financial Times Says that the CEO says... (Score:5, Informative)
Q. I read in the Financial Times that we may sell Skype. That if the synergies are strong, we'll keep it in our portfolio. If not, we'll reassess it. Is this true?
We have no plans to sell Skype... and why would we? As I said in the story, it's a great business with a great purpose -- enabling the world's conversations. With a new president, our plan for Skype is to focus on providing the best possible user experience and continuing the incredible growth momentum we've enjoyed with Skype for the past four years.
To be clear, I've fully supported big investments in Skype, including removing the earn-out, and bringing over some top talent like Josh. I think this business has tremendous potential that we've only started to tap. Josh and I are both excited about the prospects
http://ebayinkblog.com/2008/04/18/john-donahoe-talks-to-ebay-ink/ [ebayinkblog.com]
time to put it to auction (Score:1)
care much? (Score:3, Insightful)
Google (Score:2)
What? (Score:2)
So, you have a hugely profitable and growing division, that you're going to sell off because
Not that I ever understood the logic of EBay owning Skype anyway: I suppose they felt they could use it to augment their core business in some way, but that always seemed a remote prospect anyway. Rather like @Home spending some 900 million on Blue Mountain. That was a WTF moment
Two Lousy Theories (Score:2)
I'm not a conspiracy theorist, but I have a conspiracy theory, so maybe I am a latent conspiracy theorist. In the never-ending global war on terror, much has been
Who should buy Skype? (Score:2)