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eBay’s Skype Purchase Price Still Looking Mighty High

Anyone who’s ever used eBay knows how easy it is to get caught up in a bidding frenzy and end up winning by over-bidding and wonder “what the heck happened”?

Perhaps this explains eBay’s purchase of Skype which several weeks later still doesn’t make any sense to us. To put it in perspective, let’s compare it to Oracle’s purchase of Siebel which was announced around the same time. Siebel has 5,000 employees and more than a billion dollars in annual sales. For only $1.5 billion less (or $2.8 billion less if Skype’s performance benchmarks are not met) eBay gets a company that has a free piece of software and a questionable longterm revenue model.

Using this metric Independent Sources is worth…well, we’re not for sale.

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One Response to “eBay’s Skype Purchase Price Still Looking Mighty High”

  1. 1
    Independent Sources » Blog Archive » Internet Companies Think It’s 1999–and that’s not good Says:

    […] d that’s not good

    First eBay buys a small Internet telecom business for several billion dollars and Newscorp buys MySpace […]