October 1, 2007

eBay confirms that it overpaid for Skype... by nearly $1 billion!

An interesting article in Business Week where eBay basically admits:

  • They overpaid for Skype
  • It cannot create synergies between it other core services
  • The business model is not working (too many free competitors, flat pc-to-phone revenue, small active user base)
  • Management shakeup - founders are leaving "voluntarily"