eBay May Sell Skype

    April 18, 2008

Skype’s not doing too badly these days.  As it stands, though, Skype has little to do with eBay’s core business, and so it may get sold in the relatively near future.

eBay Selling Skype?
 John Donahoe

"What we’re testing this year are the synergies," said John Donahoe, eBay’s new CEO, to the Financial Times.  "If the synergies are strong, we’ll keep it in our portfolio.  If not, we’ll reassess it."

This decision is interesting, to say the least; after many, many problems, Skype’s revenue has shot up, and its user base is huge.  John Oates observed that eBay appears to be "[i]mplementing [a] buy high, sell low strategy."

eBay itself, in contrast to Skype, is still having some problems following its fee adjustments, and a decision to limit payment options in Australia has set off a fresh round of protests (in addition to an investigation).

It’s difficult to guess whether Donahoe is following some long-decided plan of action, or is just trying to make an impact as a new leader.  Either way, all business considerations aside, he loses points for using the "Office Space"-style word "synergies."