eBay Selling Skype to Google? Let Us Pray*

TechCrunch revives the Google-Skype talk that first surfaced a few months back (GOOG). As we’ve argued here ad nauseum, eBay (EBAY) has no reason to own Skype and every reason to sell it. Skype, meanwhile, would fit nicely within the communications platforms of Google, Microsoft (MSFT), or Yahoo (YHOO).

With its strength in mail, Yahoo would be the best fit. Alas, Yahoo can’t afford Skype anymore (except by using Microsoft-bid-inflated stock, which, for obvious reasons, eBay would probably be unwilling to take). Microsoft has its hands full with Yahoo, although one imagines that it could find room to at least take a peek at this one. And that leaves Google.

How much might Skype go for? Probably about what eBay bought it for–$3.1 billion–or perhaps as much as $4 billion. Skype is booking about $400 million in revenue now, and it’s conceivable the company could command 10-times that. *A reader suggests Skype is on track to post $600mm of revenue in 2008. If so, Google might well pay $5-$6 billion.

Once integrated with Gmail, contacs, etc., Skype would give Google the most complete all around communications platform on the web. Google’s global dominance, meanwhile, would provide an awesome distribution platform for Skype. Sounds like a match made in heaven. (Unlike eBay-Skype, which has always been a match made in delusion).


Something big is brewing between Google and Ebay’s Skype, we’ve heard from multiple sources. Actually, for weeks now there have been low level rumours of the two companies talking, but nailing down any details was difficult. New information, however, suggests that they are in current talks and that a partnership or outright acquisition may be announced in the near future.

See Also:
eBay Selling Skype to Google? Oh, Please, Oh, Please
Praise the Lord: eBay May Sell Skype

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