Tuesday, September 20, 2005


Kevin Werbach, Warton School, has written an excellent overview of the EBAY-SKYPE deal. A simple recap is: a lot of money and a lot of potential. Kevin mentions that telecom is a muti-trillion dollar business and Skype may already be the worlds largest phone company! For those who don't see the connection between EBAY -SKYPE Werbach, says to "Think about eBay as a radically efficient virtual platform for moving goods between people, and Skype as a radically efficient virtual platform for moving real-time communications between people." A comment by Meg Whitman, President and Chief Executive Officer of EBAY on Social Branding, “By combining the two leading ecommerce franchises, eBay and PayPal, with the leader in Internet voice communications, we will create an extraordinarily powerful environment for business on the Net.”

EBAY's market value has dropped about 5 Billion since the deal was announced. A 2.6 to 4 Billion Dollar purchase. When the major internet players crank up all the coming VoIP offerings, it may be time to say good bye to the phone companies! Investors may like the SBC yield but they cannot like the projected growth rate.
Related Comments on theEBAY-SKYPE deal.:
The Captain's Log;

Tom Raferty's IT Views

Knowlegde Business Review