eBay removes Skype from its web sites

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EBay has removed Skype functionality from its UK website, and it said it plans to remove the service from all of its auction listings across the globe by June 10, according to a message sent to account holders. This is the first step in eBay's move away from the VoIP service it acquired for a total of $3.4 billion in 2005. EBay plans to spin Skype off in an IPO in the first half of 2010. EBay CEO John Donahoe admitted that Skype has limited synergies with the auction company, despite initial hopes that combining voice connectivity with eBay's core auction business would lead to more seller-buyer communication.

When eBay bought Skype I couldn't get over the rank stupidity of the deal. The whole damn Board needs shooting for it.

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I couldn't get over the rank stupidity of the deal.

I'm not sure I would call it that, but it did make me raise a few questions at the time too.

As it turns out however, they bought a fantastic business.

I think you have to look at what was going on when they bought it. Everyone wanted to be everyone else We had banks buying engineering companies etc. So it wasn't that odd and to be honest not as stupid as it seems. They have grown the business realy well.

I think they are right to remove links from auctions as the two aren't compatible.

But its one hell of a business. And with the SIP connectivity going from strength to strength

Ian

I couldn't see the eBay/Skype synergy. Annoying enough when bidders send you emails asking "what's the reserve price?" or "will you end the auction early for a low price?", but how about getting calls from them?

There must be plenty of companies around that wished they'd bought Skype though...