eBay admits they overpaid for Skype

It’s not every day you hear a massive corporation admit that they, you know, made a mistake. Then again, we’ve seen stranger things before. EBay today admitted that they may have overpaid when they acquired VoIP company Skype in 2005. How much did they overspend? Roughly $1 billion. That’s quite a bit of cash. EBay is marking down the value of Skype at just over $900 million less than the $2.6 billion it payed to acquire the company just two years prior. Apparently Skype hasn’t proven to be the cash cow that eBay expected, with the company’s attempt to integrate Skype into its auction services falling solidly on their face. It’s not clear as to exactly what eBay intends to do to dig Skype out of the internet telephony hole, but some significant changes are certainly in order if it hopes to reclaim any of that lost revenue.


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