RSSeBay in Talks to Buy Skype
By Ed Oswald | Published September 8, 2005, 12:11 PM
Skype appears to be looking for a suitor, although it does not seem to be having much success. The company had been in talks with several firms including News Corp, however the VoIP provider's search may end with an unlikely buyer: eBay.
The Wall Street Journal reported on Thursday that talks are in the formative stages for a $2-3 billion takeover of Skype by eBay.
The move would mark a major strategy shift for the ten-year-old company and a dramatic departure from past acquisitions. However, with its stock price stagnant for much of the past year, eBay is looking for ways to restart growth as its core business matures.
A source familiar with the situation said that the company would use Skype to enhance its listings much like it already has with PayPal. For example, an interested buyer could call the seller to ask questions about the item, or vice versa.
Also, Skype could open up new methods of generating revenue for the company. eBay has long maintained that it would make acquisitions that would allow it to grow its share of the e-commerce pie, and would consider new ways of doing so.
However, in the end it appears that the acquisition of Skype would mainly be used to benefit eBay's core business of online auctions.
Neither Skype nor eBay were commenting on the talks.
This is very old news. The current news is this: EBAY TO BUY SKYPE IN $2.6BN DEAL.
For more details see:
http://news.bbc.co.uk/1/hi/business/4237338.stm
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It's a shame when dynamic companies achieving success are absorbed by larger enterprises. The giant will always win, unless David has a sling-shot.
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Why do you all think ebay is just an auction site? They may as well be a bank, too. So if they dip their toes in at 2billion, why do you think the company would flounder? That's a big incentive to make it work. Besides, imagine ebay dropping you a note on Skype for bidding info/outbids... calling a potential seller of an item... paying for skype with paypal... there's enough initeractivity worth doing it.
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I agree. And what's the point? Why the F does an online auction site want a VoiP-type company? How lame is that idea?! Oooo, they could call the seller. Like that happens often enough to bother with. Partner with Skype - sure. Cool. Good idea. Buy them? No, lame. Bad investment, esp at this point, where from my experience, the service needs a lot of work in the 4+ person conference arena. Oh well. Never an end to weird mergers this century, it seems.
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I want a GooglePal and GoogleTalk. :(
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skypal, skypebay, or whatever...good thing there's also google talk...pity if skype would disappear like it is....
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Well if ebay buys skype that'll be the end of them (skype that is).
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