“We were wrong,” says eBay CEO, John Donahoe

Unfortunately he wasn’t speaking about eBay. This is a comment he made to analysts last week about eBay’s purchase of Skype.

eBay has finally admitted it: They never figured out a way to get any synergy between eBay and Skype. It doesn’t really matter though, because Skype is starting to make money –lots of money. Skype now accounts for over 8% of all international call volume and is looking like eBay did during its years of hyper-growth –Skype is adding 350,000 new customers per day! That is 2.45 million new customers per week.

Like most other people who follow eBay, I was totally confused when eBay plunked down $2.6 Billion back in 2005 to buy Skype.  Within a few weeks eBay was telling sellers to set up Skype so bidders could call you when they had a question about your listings.  Right –that’s going to work.

eBay  never did figure out what to do with Skype in terms of integrating it into their business.  This turned out to be Meg Whitman’s last hurrah. (She wants to bring the same skills she used at eBay to fix California’s problems and plans to run for Governor of California).

But Meg may have the last laugh after all as Skype is finally starting to make lots of money. At the meeting, eBay said that Skype accounted for $550 million of revenue last year and that will more than double in 2009 when Skype will have its first Billion dollar year.

See Also

Leave a Reply

Your email address will not be published. Required fields are marked *