Rumours started buzzing when eBay CEO John Donahue described Skype as “a great standalone business.” Commentators interpreted this as a veiled intent to sell off the business unit, which eBay has not really been able to integrate and exploit. Donahue then added fuel to the fire by admitting that there were minimal synergies between Skype and the rest of the company’s portfolio.
Why might eBay be considering this move?
The most obvious reason is that they are desperate to pump more cash into the business after last week’s shocking news of declining revenue.
eBay bought Skype in 2005, paying USD 2.6 billion for the emerging telecom player. Analysts have suggested potential buyers might include Google, AT&T, and Verizon. The question is whether they’ll get back what they paid? If not, it could all prove rather embarrassing...