Reason for Acquisition

When eBay bought Skype in October last year for $2.6 billion, analysts said that the main rationale for the acquisition was the possibility of eBay adding a click-to-call feature to its online marketplace. This feature would allow eBay customers to get in touch with sellers directly via Internet telephony , instant messaging, or video conferences. In a report on eBay's purchase of Skype, published last September, Forrester Research analyst Maribel Lopez was critical of the deal. "While real-time communications (provided by Skype) could benefit auctions, it is not essential to eBay's business," Lopez wrote. "Also, consumers are fickle and there is no guarantee that Skype users will stay. Skype will be severely challenged by Google, MSN, and Yahoo as they combine content with communications like voice and e-mail," she wrote. "Buried in eBay, Skype feature innovation will languish."

Online Synergies

In contrast to the comments by Lopez, Gartner analyst Avivah Litan was optimistic about the possibility of Skype embedded in eBay's auction services. "At long last, we should begin to see the real synergies of Skype and eBay services come to fruition," said Litan. "The integration of Internet telephony with auction services makes the most sense when it comes to auctioning high-value items like cars and jewelry. People want to talk to someone live before making a high-value purchase."

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