eBay buys Skype

Yup, it's happened: eBay just bought Skype. The price? An astoundingly ridiculous $1.3 billion in cash and 32.4 million shares of eBay stock for a company which expects to make only $60 million dollars this year. But, hey, it's eBay's money to spend as it pleases, and in the press release they describe their plans to begin integrating Skype into eBay auctions in order to "streamline and improve communications between buyers and sellers" as well as their intent to combine Skype with PayPal to "pursue entirely new lines of business" that would monetize "ecommerce communications" on a "pay-per-call basis." Rockin', we guess.

[Thanks to everyone who sent this one in]

[ruben kalath @ Dec 19th 2005 12:19AM]

what in the world is skype and why did ebay buy it?

[paul @ Dec 19th 2005 12:19AM]

Wowzers

[Blarrrg @ Dec 19th 2005 12:19AM]

Sigh... I was hoping this wasn't going to happen. I didn't like what eBay did with Paypal, now I think I'll probably cancel my account with Skype.

[Robert @ Dec 19th 2005 12:19AM]

Here's the BBC link to the story if anyone's interested http://news.bbc.co.uk/1/hi/business/4237338.stm

[wille @ Dec 19th 2005 12:19AM]

Comments from the Skype founders about the deal.

http://share.skype.com/blog/company_news_and_events/skype_and_ebay_join_forces/

[TZK @ Dec 19th 2005 12:19AM]

This sucks. Maybe I will sign up with another program instead now. Blaaa.

[BouncinDave @ Dec 19th 2005 12:19AM]

I seem to think that GTalk will get a lot more users...

[clicclic @ Dec 19th 2005 12:19AM]

Recipe for becoming a billionaire:

1. start software/web-based company focused exclusively on communication among 'Net users.

2. line up angel investor or VC money (~$1.5 million)

3. Work hard promoting idea and giving away free access.

4. Wait...

[Martin @ Dec 19th 2005 12:19AM]

Ah man, this I didn't want to see, how long shall we say till Ebay introduce some kind of way to winkle $$ out of us. Not a bad pay day for the founders of Skype, I wouldn't mind that amount for one years operation of a business!

[Dave Zatz @ Dec 19th 2005 12:19AM]

Wow, this purchase is truly absurd on several levels. And here I thought the tech bubble survivors might have learned something along the way. Irrational exuberance, indeed. Perhaps the Skype founders will take a page from Mark Cuban's book (Broadcast.com -> Yahoo!) and buy a European football team.

[Ian Jardine @ Dec 19th 2005 12:19AM]

The cat is now running amok amongst the VoIP pigeons....

[Bert @ Dec 19th 2005 12:19AM]

Check out Gizmo Project. www.gizmoproject.com I like them better than Skype as they use SIP. Also, They use same Codec; GIPS so the quality is great, plus they have equivalent CallIn, CallOut Services. They have plans to interwork with GTalk.

[Matt E. @ Dec 19th 2005 12:19AM]

This proves there's still some air left in the internet bubble...I'm working on technology to morph your webcam appearance,avatar-like in real-time. Should be ready in a year. That should be worth at least a few billion dollars. :P

[Andy @ Dec 19th 2005 12:19AM]

Let me paraphrase the article on the reaction from Skypes foudners:

"whoooooooohooooooooooooooo!!!!!!!!!"

[jnasato @ Dec 19th 2005 12:19AM]

Oh, man, screw 8 hours a day...

I gotta start writing software.

NOW.

[Michael @ Dec 19th 2005 12:19AM]

#12 - Matt, I've already got a patent on that, but I'm sure we can come to a suitable arrangement, as long as you're willing to do all the work.

[blupixelz @ Dec 19th 2005 12:19AM]

Do I really want to talk to other eBayers using VoIP? I don't think any body would like to hear the other person screaming and complaining about the seller and buyer. E-mail is still way to go for eBay.

[Neel Dhamdhere @ Dec 19th 2005 12:19AM]

I don't think this purchase is absurd at all. Consider this: Consumers search eBay for sellers of an article or businesses in a particular geographic area. Then, relevant pay-per-call ads appear in eBay search results. Consumers can then reach the sellers or business via the toll-free (Skype) numbers that eBay provides in Pay Per Call ads. For each call that gets routed to the business in this fashion, it pays eBay the price per call that is set in advance (like a Google Adsense for voice). Makes sense? :-)

[zappenduster @ Dec 19th 2005 12:19AM]

didnt the founders of skype also develope the kazaa thing and make a ton of money with selling it to sharman networks now they just made the jump from millionaire to billionaire gratulations guys

[BobbyW @ Dec 19th 2005 12:19AM]

I don't want to talk to other ebay users. I want written records.

[Tecnocino @ Dec 19th 2005 12:19AM]

I like Skype very much and I hope that Ebay leave Skype to be a Skype not one of the services that they have.