Comments on: eBay to nab Skype for $2.6 billion

Auction site hopes to let consumers discuss transactions in real time. But analysts remain skeptical of the high-price deal.

[Earl Benser]

Nice Reward ...

... for Skype shareholders, but it doesn't bode well for Skype users.
Ebay is the wrong kind of company to get into VOIP (maybe Ebay is
the wrong kind of company to get into anything) and much of what
Skype is today will shortly be going down the tubes.

But, it will be nice while it lasts.

[Earl Benser]

Nice Reward ...

... for Skype shareholders, but it doesn't bode well for Skype users.
Ebay is the wrong kind of company to get into VOIP (maybe Ebay is
the wrong kind of company to get into anything) and much of what
Skype is today will shortly be going down the tubes.

But, it will be nice while it lasts.

[mobiman]

Why is skype not profitable?

They claim minimal cap ex, huge revenue growth, no customer acquisition cost, yet also say that they are not profitable now, and do not expect to be through 2006. On the conference call, they flubbed around, explaining in 2006 they were going to spend more on brand.... but I thought they said they were profitable already?
What have I missed?

[mobiman]

Why is skype not profitable?

They claim minimal cap ex, huge revenue growth, no customer acquisition cost, yet also say that they are not profitable now, and do not expect to be through 2006. On the conference call, they flubbed around, explaining in 2006 they were going to spend more on brand.... but I thought they said they were profitable already?
What have I missed?

[Mendz]

eBay and Skype?

I don't get it! I like Skype. Hope it flourishes...

[Mendz]

eBay and Skype?

I don't get it! I like Skype. Hope it flourishes...

[Rusdude]

Inconvenient to sellers

With all due respect to eBay, I just can't understand the benefits of buying Skype. If purchase of Paypal was more or less understandable, this doesn't make much sense to me.

I've sold on eBay for four years and am currently a PowerSeller. Their argument about integrating voice communications and allowing buyers to talk to sellers is not a very strong one. Most PowerSellers aren't very big and do everything to maximize efficiency (auto-responders, template emails, auto-feedback, etc.). If I understand eBay's goal correctly, we would have to have someone present to answer calls from potential buyers which isn't normally possible if you run dozens of auctions.

At least, they could've done what one analyst suggested in the article -- license Skype and try it out. If you recall, Paypal was working with eBay long before it was bought out...

[Stating]

re: Inconvenient to sellers

I agree that small Ebay vendors probably don't have the time to answer a lot of live phone calls. But Skype does offer voicemail, so at least your potential customers can leave a message. Conversely, if the customer has Skpe voicemail then you can leave them a message as well. And Skype supports conference calling (think the limit is 5), which might come in handy. So on balance, it does offer sellers some new options for managing their business.

One thing I am concerned about is just how many buyers are going to go to the trouble of downloading, installing, and setting up the Skype client software. There are technical issues related to microphones, volume control, firewall, etc. It's more complicated than just picking up a phone to make a call.

[Rusdude]

Inconvenient to sellers

With all due respect to eBay, I just can't understand the benefits of buying Skype. If purchase of Paypal was more or less understandable, this doesn't make much sense to me.

I've sold on eBay for four years and am currently a PowerSeller. Their argument about integrating voice communications and allowing buyers to talk to sellers is not a very strong one. Most PowerSellers aren't very big and do everything to maximize efficiency (auto-responders, template emails, auto-feedback, etc.). If I understand eBay's goal correctly, we would have to have someone present to answer calls from potential buyers which isn't normally possible if you run dozens of auctions.

At least, they could've done what one analyst suggested in the article -- license Skype and try it out. If you recall, Paypal was working with eBay long before it was bought out...

[Stating]

re: Inconvenient to sellers

I agree that small Ebay vendors probably don't have the time to answer a lot of live phone calls. But Skype does offer voicemail, so at least your potential customers can leave a message. Conversely, if the customer has Skpe voicemail then you can leave them a message as well. And Skype supports conference calling (think the limit is 5), which might come in handy. So on balance, it does offer sellers some new options for managing their business.

One thing I am concerned about is just how many buyers are going to go to the trouble of downloading, installing, and setting up the Skype client software. There are technical issues related to microphones, volume control, firewall, etc. It's more complicated than just picking up a phone to make a call.

[Stating]

Maybe Other Reasons For The Buy

Perhaps Ebay has other, unspoken reasons for buying Skype. At its core, Skype is a peer-to-peer network. Maybe Ebay plans to use the underlying technology for some other things besides just voice (and video). Skype's founders created Kazaa, they may be kicking around other ideas that they don't have funding to develop right now. We've seen companies like Microsoft buy other companies for the underlying technology.

eBay and Pay Per Call

Connecting buyers and sellers, while an interesting feature, I believe is not why eBay bought Skype (company's like thinkingVOICE have been offering buyer/seller communication services for auctions for over a year.)

With Shopping.com and Rent.com, eBay moved into the PPClick business. With Skype, they also see PPCall as the next frontier.

Even though Pay Per Call is early, Microsoft's acquisition of teleo, 'GoogleTalk', Yahoo's acquisition of DialPad and current players in the Pay Per Call space like thinkingVOICE, show this new frontier is being settled quickly.

[Stating]

Maybe Other Reasons For The Buy

Perhaps Ebay has other, unspoken reasons for buying Skype. At its core, Skype is a peer-to-peer network. Maybe Ebay plans to use the underlying technology for some other things besides just voice (and video). Skype's founders created Kazaa, they may be kicking around other ideas that they don't have funding to develop right now. We've seen companies like Microsoft buy other companies for the underlying technology.

eBay and Pay Per Call

Connecting buyers and sellers, while an interesting feature, I believe is not why eBay bought Skype (company's like thinkingVOICE have been offering buyer/seller communication services for auctions for over a year.)

With Shopping.com and Rent.com, eBay moved into the PPClick business. With Skype, they also see PPCall as the next frontier.

Even though Pay Per Call is early, Microsoft's acquisition of teleo, 'GoogleTalk', Yahoo's acquisition of DialPad and current players in the Pay Per Call space like thinkingVOICE, show this new frontier is being settled quickly.