Now It's eBay That's Supposedly Ridiculously Overpaying For Skype
from the make-it-stop,-please... dept
No, please. Make it stop. Seriously. We thought that Skype's hype bubble might be deflating a bit after people began to realize that Google, Yahoo and Microsoft were all in a position to offer a nearly identical offering. However, the Skhype continues. We laughed at the ridiculous suggestions all the way up the chain. It started when Skype, a company that most assume makes somewhere between $10 million and $50 million, was being valued at $1 billion, no $3 billion, oh wait, it's the mind-blowingly ridiculous $6 to $10 billion. It seemed like each rumor was built upon the earlier one -- all in the course of a single month. It was almost getting too silly to pay any attention to, but here come the rumors again. Two separate sources are now claiming that eBay is on the verge of buying Skype for somewhere between $2 billion and $5 billion. The two sources are the Wall Street Journal (saying $2 billion to $3 billion) and the NY Post (saying $5 billion). Obviously, the WSJ is a bit more credible, but there is almost no conceivable scenario under which this deal makes sense. It's not anywhere near eBay's core competence, and while you could see some ways in which eBay could make use of a VoIP service, there's no way any such service could possibly be worth $2 billion to them. The Post says the two companies have been negotiating exclusively, but that exclusivity is about to end. Everyone admits that the deal might fall through, and if there really is such a deal, then you'd hope someone would come to their senses and drop it soon. No matter what, you have to give credit to whatever PR people Skype has drummed up to get these rumors going. The rate at which their supposed value inflated is truly stunning -- more so than just about anything seen during the original internet bubble years.