In this paper, we use the case of Skype to exam-ine what happens when two or more disruptive technologies combine to offer a potentially new value proposition. In 2003, it was estimated that the music industry had lost almost US$ 300 million in music sales due toThus, VoIP was touted as the ‘next big thing’ that would be driven by the popularity of broadband Internet services.Benchmark delegated the responsibility of finding such a manager to David Beirne (Beirne), a well-known headhunter in Silicon Valley. eBay purchased Skype for $2.6 billion in October 2005. Technology has made it possible to easily make payments through online transactions. And more importantly, he is now free from the ghost of Meg Whitman that has haunted his tenure at the top position. Case Study: eBay acquisition of Skype Technologies; Assessment 1- Part A- Case Study-1- Managing Growth… this is Digital Marketing online This is a group… this is Digital Marketing online This is a group… The past decade has witnessed advancement in… ACCT3102 Individual Case Study … The case discusses the rationale behind this acquisition and the debate regarding the pricing of the deal. Essentially, eBay bought Skype for its users. eBay had entered China in 2002 by acquiring a 33 percent stake in EachNet, a leading Chinese auction site, for US$ 30 million. Members: eBay saw a slowdown in membership growth, while Skype had tens of millions of active members (around 57MM as of the acquisition). So in total it spent about $3.1 billion.eBay CEO John Donahue can pat himself on the back and say job well done. On eBay, almost five million email messages were exchanged per day between buyers and sellers…With this meteoric increase in the number of users, came the need for greater investment to support the company’s rapid growth. Case 04 HP-Compaq: A Failed Merger? This case is about eBay Inc.'s (eBay) acquisition of Skype Technologies SA (Skype), a growing Internet communications company, for US$ 2.6 billion in September 2005. In August 2004, eBay completed its acquisition of Baazee.com, an Indian auction website, for US$ 50 million…free file-sharing services like KaZaA. Hence these music record companies and movie studios had filed several copyright infringement lawsuits against KaZaA.In April 2005, a survey conducted by Envisional, a prominent Internet monitoring company, of 100 large brands and their coverage on the Internet, ranked eBay as the number one online brand in the Sentiment Index and sixth in the Prominence Index.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. I think the total operating loses aside, the company has done to recover well from the disaster Skype was for them.They also could’ve paid a dividend.
Maybe it’s even time to send Silverman a big case of bubbly!That is one way of looking at it. I felt that it was going to kill the Skype franchise and that eBay would lose its shirt. For the first two years, the company did lose its shirt as it spiraled out of control. eBay/Skype. “Phase II” of the investment was a successful one. Even buying S&P 500 Index funds would have resulted in about 8 percent gain.
Mergers & Acquisitions: Concepts explained, also find examples and case studies. Skype’s popularity spread like a virus as satisfied customer convinced their friends and family to download Skype and enjoy free long distance calls over the Internet…eBay was founded in Silicon Valley by Pierre Omidyar (Omidyar) in 1995. Case 05 The Gucci - LVMH Battle Case 06 The Polaris - Orbitech Merger Case …
{11} eBay sold Skype a few years later to private investors because its business model did not fit with eBay's: there was no mutual benefit or synergy between them. This buyout was expected to result in high revenue growth for eBay, as had happened after the acquisition of PayPal in 2002.
I think yes as it provided the best means for @Skype to drive growth toward either IPO or acquisition. Beirne convinced Meg Whitman (Whitman) to join eBay…For eBay, the online business volumes were built up by a loyal group of users referred to as the ‘eBay community’, who sold and bought goods from each other over the Internet. Niklas and Janus were passionate evangelists of the power of Peer-to-Peer (P2P) computer networks.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).For eBay to tap into the VoIP opportunity, the company could either have started its own VoIP firm or partnered with a suitable VoIP company.
Monday's announcement made it official. The main idea behind mergers and acquisition is to form a bigger company that can grow faster, have access to newer markets, have newer strengths, and becomes a force to reckon with in the market.
Omidyar wanted the power of the market to stay with individuals and not with companies. Analysts noted that the main factor driving the growth in VoIP was the increased penetration of broadband.