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No. of Recommendations: 3
What is the competitive advantage of Skype? Barely
any...but yet ebay is paying $4 billion for this
company with annual revenues of only $60 million this year!!!

I use skype...but there is no lock-in or switching costs. With a huge increase of VoIP offerings over the horizon, I don't see what will keep me with Skype.

The telco providers are poised to introduce their own
VoIP services and most customers in the world will
adopt them. Let's not forget that most customers of
this world don't use skype.

The more I think about it, the more i believe that
ebay is making a very big mistake by paying so much
for this company.

I can see some synergies, but frankly the price paid by ebay is just pure value destruction, at least IMO. The real winners are the VCs and founders of skype...

Alexander

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