E-Bay Buys Skype - does it make sense?

AlfredSokol said: "Ebay paid over [url=http://www.forbes.com/technology/2005/09/12/voip-takeover-targets-cx_de_0913voip.html?partner=yahootix]$2.6 billion for Skype[/url] Skype has very low revenues, and from that standpoint, Ebay over-paid. But does the deal make sense?"

BenHouston said: "I am guessing they anticipate very high returns from the company in the long run. If you think about it, skype is a great idea, it will eliminate long distance phone calls and so on."

HappyHarry said: "The Skype platform is a category killer. It wipes out the whole long distance industry. E-bay is figuring a killer app can be turned into big money because they did it once before."

wackypaint said: "Im pretty sure that skype can only be done through the computer. Eventhough one can call out from the computer, one still has to be on the computer. It may be a burden for people to sit on their computers and take calls. If skype did create a phone like vonage, the buisness could take off."

HappyHarry said: "[QUOTE=wackypaint]Im pretty sure that skype can only be done through the computer. Eventhough one can call out from the computer, one still has to be on the computer. It may be a burden for people to sit on their computers and take calls. If skype did create a phone like vonage, the buisness could take off.[/QUOTE] I think you make a good point. If Ebay bundles a broadband phone with the product, the chance for success is much higher."

larry said: "[QUOTE=wackypaint]Im pretty sure that skype can only be done through the computer. Eventhough one can call out from the computer, one still has to be on the computer. It may be a burden for people to sit on their computers and take calls. If skype did create a phone like vonage, the buisness could take off.[/QUOTE] It is possible. Skype already sells phones that connect to the computer through USB. I never quite understood why they didn't try and make it more user friendly though. With ebays backing I think they may be able to take the infastructure of Skype and quickly turn it profitable."

AlfredSokol said: "I used Skype a few times on my computer and I was extremely impressed with how good the connection was. These are the same guys who invented Napster I believe"