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Monday, September 12, 2005

eBay + Skype : Formidable Combination

The speculation has come true. eBay Inc. has agreed to acquire Skype Technologies SA. The acquisition will strengthen eBay's global marketplace and payments platform, while opening several new lines of business and creating significant new monetization opportunities for the company. The deal also represents a major opportunity for Skype to advance its leadership in Internet voice communications and offer people worldwide new ways to communicate in a global online era. Skype, eBay and PayPal will create an unparalleled ecommerce and communications engine for buyers and sellers around the world, claims the press release announcing the acquisition. Meg sees "Communications at the heart of ecommerce and community and by combining the two leading ecommerce franchises, eBay and PayPal, with the leader in Internet voice communications, ebay will create an extraordinarily powerful environment for business on the Net." One of the fastest growing companies on the Internet, Skype already has 54 million members in 225 countries and territories. Skype is currently adding approximately 150,000 users a day and has created a thriving ecosystem of products, services, developers, and affiliates. Skype is considered the market leader in virtually all countries in which it does business. No wonder in this presence era, in the US market alone, Skype has more users and serves more voice minutes than any other Internet voice communications provider.
- Skype & eBay shall become a powerful ecommerce and communications engine - in online shopping Communications, like payments and shipping, is a critical part of it success Skype will streamline and improve communications between buyers and sellers as it is integrated into the eBay marketplace. Skype can increase the velocity of trade on eBay, especially in categories that require more involved communications such as used cars, business and industrial equipment, and high-end collectibles.
- The acquisition also enables eBay and Skype to pursue entirely new lines of business.In addition to eBay's current transaction-based fees, ecommerce communications could be monetized on a pay-per-call basis through Skype. eBay's other shopping websites -- Shopping.com, Rent.com, Marktplaats.nl and Kijiji - can also benefit from the integration of Skype.
- PayPal and Skype also make a powerful combination. A PayPal wallet associated with each Skype account could make it much easier for users to pay for Skype fee-based services, adding to the number of PayPal accounts and increasing payment volume.
- Skype can help expand the eBay and PayPal global footprint by providing buyers and sellers in emerging ecommerce markets, such as China, India, and Russia, with a more personal way to communicate online. Skype can also help streamline cross-border trading and communications.
- With its rapidly expanding network of users, the Skype business complements the eBay and PayPal platforms. Each business is self-reinforcing, organically bringing greater returns with each new user or transaction. Working together, they can create an unparalleled engine for ecommerce and communications around the world.

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