Monday, September 12, 2005

eBay outbid me for Skype

I thought Skype was only worth $2.5 billion, so eBay got 'em for $2.6 billion. I didn't have any stock shares to offer either, so that didn't help me with the deal.

I can't say I'm surprised that Skype was bought, but I'm outright dumbfounded as to the value. We're talking about a company with $7 million in 2004 revenues, $60 million in expected 2005 revs, and $200 million forecast for 2006. Clearly, it's not the current financial rewards that brought a ton of cash, so it must be synergies in eBay, PayPal and Skype that, when combined, will bring a huge future cash flow and remove barriers to consumers of the company's services.

The most important part of this deal to me is: the telecoms need to take note and embrace VoIP solutions such as Skype. Yes, it used to be that voice services were cellular and landline territory. Now that we've got a data infrastructure between broadband and 3G wireless, you can carry data AND voice. Don't shortside yourselves by ignoring the Skype phenomenon; instead, find a way to integrate it with your current offerings. If you don't think you can do that, you won't be around in 5 to 7 years.


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