I’m sure eBay was expecting big things from Skype when they acquired the communication company in September of 2005 for 2.6 billion. Unfortunately not much has come from it all and eBay is facing a dilemma of what to do. You know things aren’t going so well when there’s a management shake-up and the CEO and co-founder of Skype resigns. The Silicon Alley Insider went as far as saying “It’s Finally Official: eBay’s Skype has Bombed.”
With eBay’s purchase of Skype not quite going as planned, eBay has announced that they are taking a $1.4 billion dollar asset-impairment charge this quarter partially due to promised shareholder payouts that total 530 million. That’s a large chunk of money for eBay and some people are even recommending that eBay ditch Skype all together and sell it to someone who has the time and resources to make Skype profitable – perhaps a company that specializes in communication.
How’d you like to be the person at eBay who suggested that Skype was a good buy? I imagine they’re feeling pretty bad right now. This purchase never made much sense to me to begin with but eBay tried to integrate Skype into the eBay experience the best they could by giving sellers the option to let potential buyers contact them via Skype. Email has evolved so much because people can do it on their own time which is why most sellers chose not to use Skype.
I wouldn’t say that Skype has bombed completely, but it’s not lookin’ good…