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Tuesday, September 13, 2005

eBay's and Skype - a reasonable marriage?

eBay has now decided that the acquisition of Skype for US$2.6 billion of which US$1.3 billion is cash, with the remainder eBay shares. This is fine and I am happy for Skype to have found a marriage partner.

Still, I just cannot see the synergies between eBay and Skype. The respective VoIP market gets crowded, with the big boys Yahoo, Google and MSN offering the same or similar services for free as well. In addition, Skype's potential in China has been narrowed to zero, after recent actions in that market. This means, that one of the fastest and most important markets is currently not available. One rational to purchase Skype would have been the possibility for sellers and buyers on eBay to negotiate with each other. But I wonder, how many would take the opportunity, considering the fact that millions and billions of transactions took place without the availability of Skype. So so far, I just don't get it! Anyone care to enlighten me?

(By Asia Business Consulting)