Let's Talk About Skype
I read Nick Carr's thoughts last night and commented on them.
I agree with much of what both of them say about Skype, but I think it just comes down to wrong guy married wrong gal.
A couple days ago, a reporter asked me via email:
I'm curious about eBay's big Skype write-off, which (along with Vonage's problems), suggests that "free" isn't much of a business model when you can't easily rely on advertising (which seems to be the case in telecom). You agree?
And I told the reporter:
I think Skype is a great business that is owned by the wrong company.
I wouldn’t jump to conclusions based on what eBay’s done with it to date.
Like everyone else who was blogging two years ago, I went back and looked at what I wrote at the time.
But why does eBay want to own Skype?
Forget for a second the rumored price of $2bn to $3bn.
What's in it for eBay?
This quote is from the Wall Street Journal's story on the rumored deal:
Skype offers the Internet auctioneer a thriving e-commerce business that benefits from so-called network effect, which is a good or service that has value to a potential customer based on the number of customers who already own that good or use that service, said this person familiar with the matter.
Yeah, so what? I still don't see the synergy in the deal for eBay.
Back to the purchase price. I think Skype is a bargain at $2bn to $3bn. I think everyone should use Skype and I think it will be on every kind of communication device over time - cellphones, PDAs, etc.
I think Skype could be the ultimate phone company of the 21st century.
So owning Skype makes sense. But I am not sure why it makes more sense to eBay than Verizon or BellSouth.
For me it comes down to what I said on Nick's blog last night.
i can't help but think that the wrong company bought skype. imagine if Nokia had bought them or even Verizon or even Google.