Sunday, October 26, 2008

eBay to Sell Skype

eBay SkypeIt is reported that there has been no profit since the acquisition, eBay plans to sell Skype. Google and Microsoft are likely to take over for snatching the IM market.

In 2005, eBay spent 2.6 billion U.S. dollars to buy Skype, trying to increase revenue of auction. However, in the period of nearly three-years, Skype did not only make profits but increase the operating costs, so the market rumors that eBay plans to sell Skype.

According to reports, originally planned to enter the IM market, Google intended to bid to buy Skype, and Microsoft has subsequently expressed the will want to take over Skype.

Skype is a software that allows users to make telephone calls over the Internet. Calls to other users of the service and to free-of-charge numbers are free, while calls to other landlines and mobile phones can be made for a fee. Additional features include instant messaging, file transfer and video conferencing.

It was created by entrepreneurs Niklas Zennström, Janus Friis, and a team of software developers based in Tallinn, Estonia. The Skype Group has its headquarters in Luxembourg, with offices in London, Tallinn, Tartu, Stockholm, Prague and San Jose.

Skype has experienced rapid growth in popular usage since the launch of its services. It was acquired by eBay in September 2005 for $2.6 billion.

Skype currently has 370 million users. The annual growth rate is 46%. In the 3rd-quarter of this year, there are 3200 increased users, an increase of 41%.

Originally Posted: China Business Daily
Author: Angulo Fu