September 12th, 2005
Ebay Buys Skype for $4.1 Billion ($2.6 Billion Now, $1.6 Billion in Performance -Related Benefits)
By Vic DaSilva
Contributing Writer, RealTechNews
EBay has used the “Buy it Now” option and purchased Skype for up to $4.1 billion dollars. EBay is going to integrate the Skype service into its ecommerce business, making it easier for buyers and sellers to communicate. From Marketwatch
“Meg Whitman, EBay’s chief executive officer, said that communications was “at the heart of ecommerce and community,” and that the acquisition would create “an extraordinarily powerful environment for business on the net.”
EBay is going to pay $2.6bn for Skype, half of in cash and the rest by issuing 32.4m shares. It will pay up to an additional $1.5bn in performance-related benefits as part of an “earn-out” to Skype’s shareholders, depending on Skype’s ability to hit certain targets by 2008.
Alice Adds: We cautioned against this deal when it was revealed that China was blocking Skype in certain cities and eventually could prevent over 1.8 billion potential customers from the service. It also isn’t clear what eBay stands to gain from this move, compared to the PayPal acquisition, but Skype is a great technology, so maybe it can survive the eBay acquisition process. In the end, sounds like a pretty pricey purchase to us.
Paulo says:
Is it good news? What about skype users, any changes for them?
September 12th, 2005 at 6:19 am
Lockergnome's Tech News Watch says:
Samsung to Target Intel
While the rest of the world is going nuts over what we call the eBay Sk-hype, Samsung meanwhile has decided to quietly take on Intel. I have written many times that Samsung is the new Sony with its array of innovative devices, outstanding LCD screens, …
September 12th, 2005 at 6:59 am
Lockergnome's Tech News Watch says:
eBay Buys Skype for $4.1 Billion ($2.6 Billion Now, $1.6 Billion in Performance -Related Benefits)
y Vic DaSilva, Contributing Writer, RealTechNews EBay has used the “Buy it Now” option and purchased Skype for up to $4.1 billion dollars. EBay is going to integrate the Skype service into its ecommerce business, making it easier for buyers and selle…
September 12th, 2005 at 7:07 am
Lockergnome's Tech News Watch says:
Oracle Get Suckered er Snaps Up Siebel Systems for Over $3 Billion
If you thought the eBay/Skype deal was a waste of cash, try this one: Oracle today snapped up ailing Siebel Systems paying $3.6 Billion of its out-moded CRM software. “Larry, you and I worked together for nine years, and that was enough.” — Tom Siebe…
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