eBay to investors: Skype will be part of the 'power of 3'

eBay to investors: Skype will be part of the 'power of 3'

Summary: Looking at more slides from the eBay presentation to investors about the Skype acquisition, we can glean more information about where eBay wants to take their new prize. And where they want their new prize to take them in return.

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TOPICS: E-Commerce
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Looking at more slides from the eBay presentation to investors about the Skype acquisition, we can glean more information about where eBay wants to take their new prize. And where they want their new prize to take them in return.

Doesn't appear eBay will mess with the Skype-to-Skype free call model. But eBay doesn't spend money recklessly. They have ideas. They have a plan. 

Wanna know more? Let's get busy:

skypeebay8.jpg 

Looks like eBay wants to keep Skype-To-Skype calls free, but is looking at third-party "expressive content" and other, as yet unspecified "voice services" as revenue generators.

eBay also seems to value Skype for their worldwide presence, and the opportunity to capitalize on that presence in "emerging markets" for "cross-border trade."

 skypeebay9.jpg

Makes sense- eBay seems enchanted with the minimum capital expenditure the existing Skype network has for existing and expanded services that will provide "Outstanding cash generation capability."

skypeebay10.jpg

Now, we get it:

Skype will be eBay's communication channel to invite other users to eBay, who will invite other users, yada, yada.

eBay will be the place where sellers go because that's where the buyers are. And vice-versa.

More sellers will offer (eBay-owned) PayPal, and because of that- you'll never guess- more buyers will use PayPal, too! 

Topic: E-Commerce

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  • Gimme some of that Koolaid

    Unless your article was cut off in my browser, you totally regurgitated the eBay koolaid for us. How about some analysis? I think this deal is terrible for shareholders. I see so little synergy that couldn't be had via a good partnership. Paypal was a no brainer. The only thing eBay gets from Skype is international customers, but I doubt that Skype will help them attract customers in foreign markets. Skype cusotmers like cheap calls.

    this reminds me of the IM acquisition craze, as in when AOL bought ICQ. They wrecked a nice little IM tool by bloating out the functionality, and I frankly doubt that AOL gets much additional revenue because of AIM.
    awarmstrong