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We'll call you
15-04-2009
by Ralph Averbuch
eBay's decision to IPO Skype is an admission of failure.
Reports that eBay has decided to hive off Skype will not come as a surprise to many who struggled to see just how the internet auction site intended to convert its USD2.6 billion acquisition in 2005 into a valuable asset which would increase business. As far as anyone can tell there's been almost no increase in revenues on eBay which can be attributed to ownership of the internet telephony firm. Now it seems that after abortive attempts by the previous owners to re-acquire Skype, eBay's board thinks the best way to maximise shareholder value will be to take it public in 2010. That may be, but surely the more important question is who was looking out for that value back in 2005? At the moment eBay values Skype at USD1.7 billion; nearly 1 billion less than its purchase price. eBay is one of the net's success stories and it has enjoyed good results in other areas, such as PayPal, where there was a clear and obvious synergy with its core business. By contrast Skype was never a good marriage and the divorce seemed inevitable.
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