eBay's overpayment for Skype is set up into two stages -- the initial $2.6 billion, then another $1.5 billion that's based on Skype meeting certain performance metrics. Today's Om Malik's noting that while Skype's first-quarter revenues were about 40% higher than the previous quarter, its per-day revenue average needs to be 50 percent higher to hit its internal goal of $200 million for the year. Guess that means they better start pushing those ringtones harder, given the lack of a coherent strategy. So while eBay may end up not having to pay the full $4 billion, it wouldn't be for the best reason -- because Skype's not performing up to expectations. Update: The plot thickens a bit -- that 42% quarterly revenue growth figure eBay put in its earnings release is misleading. As Om pointed out back in January, the fourth-quarter figures only covered the 78 days of the quarter after eBay's buyout of Skype closed. So the first quarter, which had the full three months, should see a bump by virtue of being 13 percent longer. Using the daily revenue average is one way to get a fairer comparison of the two quarters. In the fourth quarter, they were $318,000 per day, and if you extend that out over 90 days, you end up with about $29 million. In the first quarter, the average was about $391,111 per day or $35.2 million. These figures show a much less impressive 23 percent revenue growth -- nearly half of what eBay states.
If you liked this post, you may also be interested in...
- Feinstein And Rogers Try To Scare Americans With Ooga Booga Terrorism Threats
- Lessons Learned From Adam Lanza's Video Game Obsession: Blame Dance Dance Revolution
- Editorial Claims Houston Prosecutors Are Pushing Through Nearly 1,000 Sex Trafficking Indictments Every Day
- Where Is The 'Free Trade' In The TPP IP Chapter?
- Sandy Hook Video Game Prompts Everyone To Get Everything Wrong