“Skype was out to be the democratization of voice. eBay/Skype. Know if your investments are going to be profitable, and whether it is beneficial for your product.
On Tuesday September 1st, eBay, the world's largest online-auction house, announced that it would sell 65% of Skype, an internet calling service. “eBay is an extremely conservative, bank-like culture,” says Abramson. Oct. 1, 2007 4:25 p.m. PT. Why did the merger fail? The following four case studies show how mergers can create problems.An M&A strategy can create synergies, but it can also create cultural clashes. Abramson believes the company will focus on bringing advanced video conferencing services to consumers, and on expanding its presence in the mobile VoIP market.Picked by Techconnect's EditorsThis content is written and edited by members of our sponsor community. The editorial team does not participate in the writing or editing of BrandPosts.The eBay-Skype marriage suffered from other problems too.
BrandPosts create an opportunity for an individual sponsor to provide insight and commentary from their point-of-view directly to our audience.
Buyers could … EBay bought Skype hoping to take advantage of its promise of online phone service and its innovative P2P -- peer-to-peer -- technology.
The editorial team does not participate in the writing or editing of SponsoredPosts.BrandPosts are written and edited by members of our sponsor community. First, the culture clash between the two companies was too great to overcome.
The buyer was not, as …
eBay was founded in Silicon Valley by Pierre Omidyar (Omidyar) in 1995. SponsoredPosts create an opportunity for an individual sponsor to provide insight and commentary from their point-of-view directly to our audience. Culprit: Customer profiles, culture clashes.
Generation gap: how the $3bn marriage of eBay and Skype ended in divorce This article is more than 10 years old When a dotcom big-hitter bought a brash start-up, Wall Street shook its head. Companies can grow their revenues and profits from within by cultivating and growing demand for their products and services, or they can acquire other companies.An M&A strategy can create synergies when companies with complementary products, services, and missions unite. Matt Asay. The buzz on eBay’s moves was finally laid to rest in September 2005, when it announced that it would buy Skype Technologies SA (Skype), a growing Internet communications company, for US$ 2.6 billion (US$ 1.3 billion in cash and US$ 1.3 billion in stock).
EBay failed to integrate Skype into the company's mission. Such sponsor content creates an opportunity for an individual sponsor to provide insight and commentary from their point-of-view directly to our audience. What to Learn? In 2005, eBay bought Skype for $2.6 billion. The Ebay purchase of Skype was a disaster from conception to courtroom Was Ebay's historic Skype acquisition the worst deal in the history of the PC industry? They were out to be the leveler of the playing field, and they’ve done that.” In addition, Skype went through several management teams during its four-year eBay period—a lack of consistency that didn’t help matters at all.PCWorld helps you navigate the PC ecosystem to find the products you want and the advice you need to get the job done. Skype has been a great product but a crumby acquisition for eBay. The editorial team does not participate in the writing or editing of sponsor content.SponsoredPosts are written and edited by members of our sponsor community. While the eBay and Skype merger failed because eBay miscalculated its customers' demand for Skype's product, other M&A deals have failed … After four years of the acquisition, eBay, realizing about the failure of this merger, decided to free Skype, and sold 65% of its stake for USD 1.90 billion to private investors. Skype = failed acquisition for eBay. Keating sees Skype making a play for the business VoIP market, where competition is fierce.
Consider these four failed mergers as learning examples. The deal was troubled from the start, as eBay misunderstood its entire customer base. However, an M&A strategy can also create tensions and failure when corporate cultures clash, or the acquirer fails to successfully integrate the acquired company's assets, systems, and brands. Some corporate unions fail to create synergies and thereby destroy shareholder value. Transforming a small business into a large one, or scaling a business, occurs in one of two ways. Now that Skype is free of eBay, where will it go from here? When eBay bought Skype, it had hoped the VoIP service would improve communications between its customers.