[Perry Reed]

Originally Posted by Cybrid

Email is good. but skype would be better. Especially for high cost items.

$2.5 BILLION better? I don't think so.

[Perry Reed]

Originally Posted by Cybrid

Email is good. but skype would be better. Especially for high cost items.

$2.5 BILLION better? I don't think so.

[fresh-popcorn]

My thoughts on this buyout is similar to Yahoo buying broadcast.com a while ago.
Did Yahoo pay too much? Heck yes, Did E-Bay pay too much for Skype? Heck yes but for the companies that have bought them they must know something that we surely dont.
Plus their plans are far more interesting to them than us. We only look at it from the consumer point of view, What does this buyout effects have on us.


Yahoo after many years are now just starting to try and get some of the revenue back from the massive 5 billion purchase of Broadcast.com.
look at yahoo launch.

We probably wont see the true effects of this for at least a few years unless e-bay had something in mind right now and they already knew skype had the technology to roll it out soon.

my .02

[Phoenix]

Ebay buys Skype. Hmm.

Go over to Engadget and read about SIPphone and their Gizmo Project software and go to SIPphone's site and read a bit more, and then tell me if Skype was the best purchase. Don't think so.

Skype could end up being a complete waste of money. It already is, IMO.

But hey, what's a a couple billion bucks?

[makic]

If you REALLY want to know what ebay was thinking, check out this http://investor.ebay.com/downloads/050912ebay.pdf. Or you can check out http://blogs.zdnet.com/ip-telephony/?p=648 for one interpretation.

[whydidnt]

Originally Posted by makic

If you REALLY want to know what ebay was thinking, check out this http://investor.ebay.com/downloads/050912ebay.pdf. Or you can check out http://blogs.zdnet.com/ip-telephony/?p=648 for one interpretation.

Thanks for the links, it appears ebay really likes the fact that revenue could grow significantly without having to lay out additional capital. That makes sense, except in my mind that exactly why NOT to pay this much. They could build their own network without having to layout capital. So it seems the real kicker here is access to other markets that Skype has a presence in. I tend to agree that is really what ebay is buying here. I just wonder if this is the most cost-effective way to gain access into those markets. When you consider the whole VoIP thing is being done by everyone today - video chat anyone? One has to wonder how ebay is serving their stockholdders with this purchase. I guess if they can get every lister to include a SKYPE link for $.50/listing it would be pretty easy to drive revenue quickly - but I'm not sure they'll be able to do that.

[dazz]

Maybe eBay should have taken more of a look at Vonage. While we might all be getting sick of the banner ads showing up EVERYWHERE, at least they make money!

[ricksfiona]

Vonage is on ropes right now. I think they will be out of business in a couple of years.

Skype ROCKS! I only used Vonage to make outgoing busines calls at my home. That was costing me $40/month and when I wanted, they wouldn't let me go to a cheaper program. So I left them.

I switched to Skype two months ago and paid for their SkypeOut service. In the two months I've had Skype, I've used only 2 of the 10 Euros I paid. So by using Skype, I've saved almost $80 in two months! I have a friend who uses SkypeOut and in 9 months of heavy usage, still has 3 Euros left on his account!

I haven't figured out what I'm going to do for future incoming business calls. I don't want to use my cell phone for that. I'm looking for an inexpensive way to have a phone number/voice menu system and forward the caller to the Skype number associated with appropriate department/person. I was considering sending the Skype folks business services they should consider creating.

[Cybrid]

Originally Posted by Perry Reed

$2.5 BILLION better? I don't think so.

But...eBay thinks so.....
Lookit. Whoever inked the deal has undoubtedly thought their decision through and thinks its a good deal. It's all part of eBay....one man's trash is another's treasure....As to whether this will be remembered as a good or bad thing...time will tell.
A lady once came to mail something through the postal outlet I work at and told me that a lil' antique matchsafe she bought at a garage sale for $20 was on an auction sitting with a $5000 bid. This seemed like someone was playing a gag but at the end with $10,000.....the guy did actually pay. Apparently this matchsafe is indeed rare and this european billionaire collects them. Who knew?
Perry, D'you think the guy who sold it for $20 wouldn't have taken $10,000 if someone had offered? I don't think so!

[dazz]

Originally Posted by Cybrid

But...eBay thinks so.....
Lookit. Whoever inked the deal has undoubtedly thought their decision through and thinks its a good deal.

But there have been so many examples of companies buying other companies and paying WAY too much that you just can't say this for sure. Hopefully they have thought it through but they might not have done enough thinking. Sometimes the desire to make sure nobody else gets it can make companies pay way too much.

Take a look at some of the HUGE telecom buyouts that ended up being way over valued and you will see what I mean. I don't subscribe to the "surely they know everything we don't" theory. :wink:

[dazz]

Originally Posted by ricksfiona

Vonage is on ropes right now. I think they will be out of business in a couple of years.

Is that just your guess because of your experience or have you looked at their financials?