eBay sucked into the hype surrounding immensely popular Skype
For starters, eBay has created a ripple in the volatile internet market with its acquisition of Internet telephony provider, Skype Technologies. The move has brought the San Jose-based company directly in line with Google, Yahoo! and Microsoft’s MSN. eBay, which has built a decade long foundation on its online auction and fixed-price business is trying its luck with this Luxembourg-based company, which is barely two years old, but has rocked the VoIP market ever since. Investors are not too happy though; and perhaps rightly so. Speculation of the deal itself had led to an immediate fall in eBay’s share price by 4%. The reason behind this is that the $2.6 billion deal seems too high a price to pay for a company whose 2004 revenues were a meagre $7 million. Mark Main, an analyst at Ovum says, “Whichever way we look at it, eBay is paying very dearly for what it’s getting here”.........
Source :- IIPM Editorial
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