It's Official: eBay Has Too Much Money (Some Of Which Is Now Skype's)

from the defend-that-valuation dept

This evening the rumors increased, and as of a few minutes ago, it's now official that eBay is vastly overpaying for Skype. It's a great deal for Skype, and a ridiculous one for eBay. They're paying $1.3 billion in cash, $1.3 billion in stock and apparently there's another $1.5 billion on the line in incentive payouts based on various performance metrics over the next three years. I understand that Skype has a great product (I use it all the time) and I understand that they've built up a nice community. However, the community wasn't that large and very few of the users were paying (and even those who were paying weren't paying very much). In the meantime, Yahoo, Google and Microsoft are all getting into the same market with much bigger war chests and much bigger user-bases. Are there ways that eBay can integrate Skype into their current offering? Yes, somewhat. However, the buzz going around that this will let buyers and sellers talk to each other is ridiculous. I've bought and sold plenty of stuff on eBay, and not once have I ever wanted to speak to the person I was dealing with. The talk about synergies with Paypal seem even more tenuous. There seems to be very little in the way of real synergies between the two companies at all. About the only thing this suggests is that eBay is worried that it's existing business is in trouble and it needs help fast -- and apparently the best way to do that is to significantly overpay for a VoIP offering with too much hype.

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  1. identicon
    Schoolmaster, 2 Dec 2005 @ 11:01am

    Re: No Subject Given

    Bob,

    In all seriousness, please leave Techdirt, and read your technology news elsewhere. You don't seem to like it anyway, so there's no loss to you.

    The benefit to the TechDirt community is that we won't have to read your ill-conceived arguments any longer, which will save us some time and anguish. You see, all of us have mothers and uncles who don't understand the technology industry at all, and we waste our time at Thanksgiving and Christmas holidays explaining to them how to set the time on the VCR and how VoIP is a threat to telecom. We don't need to waste our time on Techdirt doing the same.

    Mike seems to write TechDirt posts in a sort of shorthand that assumes readers are bringing something to the table. He doesn't flesh out the arguments in a long post the size of this comment, he just gives the guts of it, targeted at people who can understand. This doesn't suit many readers, including you.

    You are poorly informed, your arguments are weak and misconstrued, your savvy of the industry is very green. You just don't belong on TechDirt, where the other readers are beyond that level. Consider yourself a first grader, who mistakenly walked into our sixth-grade class. Embarrassing, yes, but it's OK. Don't be embarrassed, you can always walk out.

    Go back to the mainstream press, and get your tech news from Time or People. They will spell it out for you.

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