eBay to Acquire Skype for $2.6 billion

Sep 13, 2005 18:13 · 132 words · 1 minute read

Skype had 2004 revenue of $7 million, and projects 2005 revenue of $60 million. Not earnings, but revenue… this makes the $2.6 billion that eBay is paying to acquire Skype quite remarkable. Skype does have powerful network effects going, though, and they will not prove easy to dethrone. Just like eBay. I’m sure that’s where the attraction is, but the purchase amount just boggles the mind.

One thing I forgot to mention initially when I put this post up: eBay is paying $1.3 billion in cash. This isn’t the stock-for-stock hocus pocus that went on in the late ’90s. The people who funded Skype get to walk away with real euros the day the transaction closes.

There must be something there, though. After all, Blazing Things’ phone number comes from Skype In.