Skype and Ebay and Paypal: Seamless experience

What lead Ebay into paying $2,6 billion in cash and stoak plus $1,5 billion in by 2008 if it goes well?

In fact I think that, as we discussed in class, this acquisition has a strategic fit and this can be further explained at http://investor.ebay.com/downloads/050912ebay.pdf.

They illustrate how Ebay Paypal and Skype can create an unique customer experience see the product, Skype it over for details and Paypal it at the end.

In this presentation they mention that all the 3 businesses benefit mutually from each other.

Ebay clearly relies on the Internet usage growth as well as the market maturity level over the coming years, meaning that more users will buy and pay through internet.

There is also an interesting example of the Skype integrating in Ebay China

Worth looking.

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Group G - Photo

Hi guys

I am posting here the photo of our group.
I am having trouble in posting it under the profile on the blog side bar, i will try to talk tomorrow with Enrique to see if he can help.

Cheers
Rodrigo


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About the economics of the business

One may wonder how does skype makes money out of its free service!
The fact is that Skype Out is thr main revenue stream from Skype and in fact its revenues already tell something about the business.

Skype is making around $116 million a year (according to the Ebay Financial Statement, $24 million in the 4Q05). This means $320 k per day.

If we consider that the business is growing at some 175,000 users / day, the revenues should be growing at a really fast pace.

In order to get an order of magnitude of this numbers I will be posting peers comparisson late today, I will also try to see if I can find some Skype revenue projections.

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