TechnoMagicians Blog

Any sufficiently advanced technology is indistinguishable from magic – Arthur C. Clarke.

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eBay And Shype / Skype

September 13th, 2005 · No Comments

I can't figure it out either and I'm not going to waste my time trying. Perhaps its the start of Internet Bubble 2.0. Thats about the only thing that makes sense. I better start loading up on dopey business idea stocks and get ready to dump them just before the bubble bursts:

So I listened to the Skype-eBay conference call this morning and talked to many people about the deal – and still can't quite get my head around why eBay is so willing to spend $4.1-billion on a company that had sales of $7-million last year (albeit a target of $60 million in 2005 and $200-million in 2006) and doesn't seem to have a sustainable competitive advantage. Here's my second take on how Skype fits into eBay's strategic thinking:
1. Skype is integrated into eBay as a sales tool, particularly for categories such as automobiles and B2B where eBay can score high margins and healthy profits. (Mark Evans)

Category: General


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