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eBay Getting Rid of Skype

Open to "Reasonable" Offers Before IPO

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Update: paidContent.org is reporting that eBay CEO John Donahoe says that the company is "still open to other offers" and that he will “maximize the value of Skype. Period." Any "reasonable offers" made between now and 2010 (when the proposed IPO is scheduled) will be evaluated.

Original article: eBay announced today that it does indeed plan to separate Skype from the company. This is to begin with an IPO in the first half of next year. The specific time will be based on market conditions, the company says.

"Skype is a great stand-alone business with strong fundamentals and accelerating momentum," said eBay Inc.’s President and CEO, John Donahoe. "But it’s clear that Skype has limited synergies with eBay and PayPal. We believe operating Skype as a stand-alone publicly traded company is the best path for maximizing its potential."

"This will give Skype the focus and resources required to continue its growth and effectively compete in online voice and video communications," he continued. "In addition, separating Skype will allow eBay to focus entirely on our two core growth engines—e-commerce and online payments—and deliver long-term value to our stockholders."

Skype

eBay says the decision to separate Skype is based on a timeline outlined by Donahoe when he became eBay’s CEO in April 2008. Back then, the company said it would spend a year evaluating Skype and its potential synergies within the eBay portfolio before making any decisions about Skype’s future.

The news comes after a couple of days of back and forth on whether or not Skype was breaking away from eBay or not. Yesterday, it was announced that StumbleUpon is also breaking away. eBay announced a ton of new features to its popular, yet highly criticized marketplace today as well.

Skype is expected to top $1 billion in revenue in 2011.

eBay Getting Rid of Skype
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  • http://www.francislee.com.au Francis Australian SEO

    why eBay purchased skype in the first place, couldn’t see how useful it was to their auction empire. Its definitely profitable, just not very useful to eBay in terms of integration with their main business

  • http://www.aussiedirectory.com.au australian directory

    and it make senses. Knee jerk reaction in the first to go ahead and purchase skype. They should had gone and make partnerships with communication companies.

  • http://www.crearecommunications.co.uk Nick Rinylo

    Skype is an excellent resource and we use it to communicate internally throughout our company. I actually agree with Australian directory (nice name) that they maybe should have been brought out by a communication company BT maybe.

  • http://linkdirs.blogspot.com/ Eric Directories Guy

    I wonder what took them so long to take this decision. Why didn’t they get rid of it in the first month of their romance?

  • http://websearchmaven.com search blogger

    We have been hearing that skype doesn’t really generate any revenue at all. Its rather incredible that its predicted income is in the excess of one billion dollars. Everything is free and skype out does not seem to be so valuable.

    • http://ballroom.blogprism.co.uk ballroom

      - it’s ok for if you have internet, but for some reason don’t have a conventional landline, like me. but yeah, people like me are probably in the minority.

      i have also a skype in tel. no. that forwards to my computer – but the number is for a region that is 400 miles away! you can’t get a local “virtual landline” if you live out in the sticks!