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Google-Skype: Everybody Wins

Posted Apr 02, 2008 12:03pm EDT by Aaron Task in Investing, Internet, Venture Capital, M and A, IPOs

The tech M&A rumor mill is heating up again with TechCrunch reporting Google may be buying Skype from eBay. True or not, this merger actually makes a ton of sense for Google, and would help eBay extricate itself from this match made in hell.

But as bad and ill-conceived as the Skype deal has been for eBay, it is possible the company could at least generate some return on its initial $4.1 billion investment. According to TechCrunch, eBay could fetch 8 to 10 times Skype's approximately $600 million in revenue should a deal come to fruition.

John Donahoe has said Skype has one year to prove its merit, but few shareholders would hold it against eBay's new CEO if a deal gets done sooner.

17 Comments

George D
George D - Wednesday April 02, 2008 12:42PM EDT

don't care for skype much and I don't trust google, so it' a match made in heaven

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 02, 2008 12:48PM EDT

Gizmoproject is the real deal. Grandcentral (also acquired by google) already supports that. It's supports industry standard codecs, unlike skypes. If it doesn;t have 10 million uses, it should have couple million. Google may be better of also looking at Gizmoprojects that the same time. At least it will provide good leverage to eventually get to the Skype.

Chillipepper
Chillipepper - Wednesday April 02, 2008 12:49PM EDT

That will be a great combination. Ebay is not doing Skype any good and their business environment is not suited for Skype. Google should be a great fit and probably will bring Skype to the next level.

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 02, 2008 12:49PM EDT

what is that crook doing on yahoo tv. I thought the sec said he could not promote any stocks.

Michael
Michael - Wednesday April 02, 2008 12:58PM EDT

Google might as well buy skype! Ebay will prove to be a long term looser and take everything associated with it, E-bays recent unscrupuluos methods from inner management and sneek attacks on the very people that made them strong will tumble the empire .. with its rampent wage on their loyal sellers and buyers pocketbooks I believe they will soon be challenged by a lesser evil! Yahoo auctions had bad timing so did several other rivals but a new wave of shakers and thinkers are lurking...

Razor
Razor - Wednesday April 02, 2008 01:04PM EDT

This is sooooo coooooollllll

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 02, 2008 01:08PM EDT

I'm seriously considering looking elsewhere for my business news since Blodget's face began appearing on every Yahoo! page. That "I'm better than the world" mentality has got to go. The guy does know a lot, but his demeanor makes me sick. Regarding Google-Skype, try to see the other side of things. VOIP is clearly not what everyone thought it would be. How would this acquisition lay the groundwork for google's future projects and expansion, and also how could it be useful by itself?

T
T - Wednesday April 02, 2008 01:11PM EDT

I don't see a lot of synergies here...Why is Goog willing to acquire a desktop application company with a not top notch product difficult to be merged into Goog's web application environment? Not making a lot of sense to me. To acquire the customer base? C'mon...

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 02, 2008 01:13PM EDT

NOT BLODGETT AGAIN. I, too, thought he was BANNED for life from securities industry.

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 02, 2008 01:13PM EDT

NOT BLODGETT AGAIN. I, too, thought he was BANNED for life from securities industry.

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 02, 2008 01:17PM EDT

YES!

BeckiW
BeckiW - Wednesday April 02, 2008 01:18PM EDT

Skype would be a winner with Google, or YAHOO, for that matter....& Chacha too. Voice Over IP is definitely the wave of the future, & will take us all to the next level. So, anyone with vision needs to look seriously at utilizing the technology that SKYPE & co's like VOXEO offer. These search engines are going to be wise to get involved NOW!

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 02, 2008 01:18PM EDT

Go eBay!! You guys rock!

Helmuth C
Helmuth C - Wednesday April 02, 2008 01:24PM EDT

Google with Skype appears to be a good deal. Most of my colleagues use Skype.

Tzachi
Tzachi - Wednesday April 02, 2008 01:27PM EDT

Well, just think about the Android + Skype synergies and you have got a wining story. To me it seems that the Desktop app aspect is not where things are pointing at. Skype invented the concept of Internet-Telco platform, GOOG now gets to business with Android as Internet-Telco device. So marry the winning open Telco-Platform and an emerging Internet-Telco device and bang... together they hit the ground running.

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 02, 2008 01:35PM EDT

Google would make Skype a household name. It is hard to beleive more people do not know what Skype is.

Sinister
Sinister - Wednesday April 02, 2008 04:49PM EDT

This would be a great deal for all parties involved, I support it wholeheartedly. That is all the deal really needs... my approval.

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