eBay to slash Skype deal price by $1.2 billion: Auction sites shares up 1.6 percent
Filed under: Business, News | By: Peter Chubb
Posted on: October 2, 2007 | 1 Comment
It has been reported that eBay are to slash at least $1.2 billion of the price of the deal for Skype which they purchased two years ago. Both co-founders Janus Friis and Niklas Zennstrom have resigned as executives this is an admission that Skype is losing its appeal and returns from Skype has been lower over the past two years than eBay expected.
Reports that eBay wants to pay less for Skype has been reflected in the stock market as eBay shares rose 1.6 percent to $39.66, that’s the highest it has been now for 18 months. This shows that eBay once again is doing very well in their online auction business.
The whole Skype thing has lost so much interest and much of that has to do with so many other companies doing the same thing, and some are doing a better job. I used to use Skype but was always losing my connection which is not good if you are in a conference at the time.
I now use Google Chat and I have never lost my connection, but the downside to this is no conference but that will come in time.
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EBay will alwasy have its luster and all it touches turns to gold. I suppose Skype became once of those passing trends only to find more competition in their arena.