Stop the Hype!

Skype’s sale to Ebay might not be what the owners wanted but they did it anyway. There are rumors flourishing, and Skype has been linked to not only Google and Ebay, but to Yahoo and News Corp. Even one of its founders implied the following (excerpt from

At eBay, Skype “would be a second fiddle [to the site’s trademark auction software], as eBay is already successful and profitable,” says Arnold. “Skype would be on the outside, looking in.”

It is still my firm opinion that any company that pays $4 billion for Skype is nuts. Sure they handle over a third of VOIP calls in the US (so does Vonage), but they are only due to make $60 million in revenue this year. The VOIP landscape is going to change extremely fast as Google recently entered the market. My recommendation is that any one (eBay) looking to buy Skype, take great heed. What may seem like a great acquisition right now may turn around to be one of the grossest over payments of all time.

Christen Costa

Grew up back East, got sick of the cold and headed West. Since I was small I have been pushing buttons - both electronic and human. With an insatiable need for tech I thought "why not start a blog focusing on technology, and use my dislikes and likes to post on gadgets."

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