I posted about the rumored deal on Thursday of a marriage between eBay and Skype. Today, the two companies announced that eBay would purchase Skype for $2.6 billion dollars:
Company executives said Monday that eBay plans to pay $1.3 billion in cash and $1.3 billion in stock to the global communications company. It has agreed to hand over up to an extra $1.5 billion, for a total payout of more than $4 billion, if Skype meets certain financial targets by 2008, according to a presentation to investors on Monday morning.
As I said previously, I am not sure how smart this was for eBay. Surely purchasing PayPal back in 2002 made a lot of sense, and they immediately saw a return on investment. And it was probably a rather large return, if I had to guess. Skype doesn’t make a lot of money, and might not ever make that much money.
If all the deal turns out to be is a communications network for eBayers, it’ll be pretty clear that it was a waste of money. eBay could probably have built their own system for far less. Who knows though, it might turn out to be a very wise investment. Maybe Meg Whitman knows something the rest of us don’t. Time will tell.
You can read the official press release here.
Read: CNET News.com