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"This turns the entire telecom industry picture on its head, and demonstrates that voice, presence, text messaging and other IP-based applications will be essential for the company of the future," said Jeff Pulver, the chairman of pulvermedia, which promotes Internet-based phone services. Last month, Google announced a service similar to Skype's free service called Google Talk, and Microsoft said it was acquiring Teleo, a San Francisco company that allows users to call conventional phones from their PCs.Įven without a portal, some industry analysts said eBay's purchase of Skype was a sign of how voice calls were increasingly becoming one of many services that companies will provide, not a stand-alone business.
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"You can be sure we're going to focus on e-commerce." By increasing market penetration, the app becomes indispensable and the user. "I'm a big believer in focusing brands and businesses that are in very large markets," she said by phone from London.EBay is "absolutely not" interested in developing a portal. Outside of America, where sending text messages is more expensive, SMS apps. With growth at eBay showing some signs of slowing, Whitman said she was not interested in developing a portal that included a variety of products and services, like Yahoo, Microsoft and Google have been doing. Only 13 percent of Skype's users, though, are in North America nearly half are in Europe and another quarter are in Asia. Skype could also help eBay's customers trade real estate, vacations and other services that typically involve more detailed conversations to complete, eBay said.
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In buying Skype, eBay's executives are making an expensive gamble that giving its 157 million traders a way to talk to each other for free will make it easier for them swap everything from toys to cars. News Corp., Google and Yahoo were mentioned at one time or another as potential suitors.
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Though revenue is expected to grow to about $200 million, from an estimated $60 million this year, eBay does not expect Skype to turn a profit until the fourth quarter next year.ĮBay's purchase ends months of speculation about which company might buy Skype, which since 2002 has been giving away its software that allows people to talk to each other for free by linking their computers. The total value of the deal may grow based on "potential performance-based" considerations that could be worth an additional $1.5 billion, eBay said. NEW YORK - EBay said Monday that it had agreed to buy Skype Technologies, the Internet phone provider based in Luxembourg, for about $2.6 billion in cash and stock, a move that the company hopes will bolster trading on its online auction site.