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    Ebay Reconsidering Skype Purchase

    By Stock Charts | April 19, 2008

    Ebay, Inc. (EBAY) is currently reconsidering it’s ill-advised $3.1 billion acquisition of Skype after the auction company has continually failed to find ways to find synergies between Skype and it’s core e-commerce business.

    “What we’re testing this year are the synergies,” Mr Donahoe told the Financial Times this week after Ebay reported its latest earnings. “If the synergies are strong, we’ll keep it in our portfolio. If not, we’ll reassess it.” That could lead to the disposal of the business, he indicated.

    Despite the lack of synergy between the two companies, Skype has continued to grow in both user base and revenues, reaching 309 million users and $126 million in revenues.

    Ebay’s stock chart has been recently buoyed by positive earnings and outlooks in the tech sector after a steady decline in 2007. If Skype does indeed spinoff into a separate company, this would allow eBay to streamline it’s focus on it’s core business.

    Ebay Stock Chart

    Source (Financial Times)

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