eBay's Acquisition of Skype - Will the Gamble Work?


eBay's Acquisition of Skype - Will the Gamble Work?
Case Code: BSTR226
Case Length: 18 Pages
Period: 2003-2006
Pub Date: 2006
Teaching Note: Not Available
 Price: Rs.400
Organization: eBay Inc.
Industry: Internet & e-Commerce
Countries: USA, Europe
Themes: -
eBay's Acquisition of Skype - Will the Gamble Work?
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

This case is about eBay Inc.'s (eBay) acquisition of Skype Technologies SA (Skype), a growing Internet communications company, for US$ 2.6 billion in September 2005. The case discusses the rationale behind this acquisition and the debate regarding the pricing of the deal. The case also covers the growth strategies adopted by eBay since its inception. The case highlights the growth of the Voice over Internet Protocol (VoIP) market and some of the initiatives taken up by leading online companies like Google Inc., Yahoo! Inc., and Microsoft Corporation to capitalize on this opportunity. The impact of VoIP on the future of the telecom industry is also briefly discussed.

Issues

The case is structured to achieve the following teaching objectives

  • Understand the key issues and growth challenges faced by an online company in the highly competitive Internet economy
  • Appreciate and understand the issues related to the impact of technology on the business environment, growth through acquisitions, leveraging synergies, and pricing of acquisition deals

Contents

Keywords

eBay Inc., Internet dot-com economy, eBay community, Broadband Internet Connections, Voice over Internet Protocol, Skype Technologies SA, Internet Communications Technology, Paypal, Pierre Omidyar, Meg Whitman, Overseas Acquisitions, Inorganic Growth, Peer-to-Peer computer networks, Strategic Fit and Synergy, Global Telecom Mobile Phone Industry

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