Mohamed Mansour's Personal Website
Ebay buying out Skype and the riot begins
Posted on September 13, 2005, 5:18 pm EST
Today Ebay announced that it will aquire Skype (the best provider for internet telephony). They are putting up a big gamble!
For some reason the auction giant E-Bay is seeing a huge potential in the VoIP giant Skype! They are even placing at least 2.6 billion US dollars on the table...
This month has been very interesting concerning the VoIP era. Many big software companies are trying to concentrate on that subject. Google launched the beta version of Google Talk, which will have potential in the future since they state they are using new voip technology. Microsoft is improving their MSN system. Telephone companies are now offering online service which isn't free. But who would guess that ebay wants skype. They mentioned about integrating the auction portal with some kind of VoIP. In the future we will know.
The amount EBay is placing on the table is a huge risk. EBay said it "would pay $2.6 billion in cash and stock for Skype, along with future payments that could total an additional $1.5 billion."
The interesting part is that Skype was founded by the original Kazaa developers, a p2p application which spreads illegal material. They are assumingly targeted by the USA as copywrite infrigement. They made the p2p world very popular at their time, as one of the best p2p clients. And now they did something even bigger which isn't illegal.
Skype is very well known in Europe, and it is just getting started to get known overseas. I believe it has potential. I first used Skype when it was 3 months old, and I thought it was a nice program that acted like a phone. The only difference was it's free. That made it popular.
I would hope that Skype doesn't buy out, if they do it would make them alot richer, and make its customers sadder. But if they don't sell it, the bigger software giants will gain the lead soon enough.