The last few days were rather quiet on the Skype Hype front. It seems my first gut reaction about Skype Was right and only over thinking caused a shift. I still view the Skype team as master marketers who played the game to the fullest and have won with eBay making the acquisition.
A payout of 4.1 billion in less than two years is a huge return.
As I continue to think about this the market dynamics behind this are intriguing. First both eBay and Skype use an arbitrage like model, making money in the middle or as bookies like to call it, the "vig" in street parlance. Second the community aspects of Skype and the one on one aspects means that users will be able to interact with one another. Third, Skype with their conference call capabilities will be able to offer a "live audio auction" type of event or haggling. In some of their more non-consumer business auctions for B2B type of things create more WebEx like presentations more easily.
I see the merger helping eBay grow in new categories and make new marketplaces. For example lead generation of sales of items. This is very much akin to what Google is seeking to do with Google Talk and will fuel a pay per call model as a revenue generation driver. Buyers and quantify and pre-qualify their purchases or bid. Voice replaces email in this model. According to Meg Whitman 5 million emails go between buyers and sellers. Once eBay and Skype integrate the communications tool user names will serve as the way people connect. No need to share phone numbers. This will be very beneficial on high ticket items, especially with eBay Motors.
Now, the integration of all this will take a while, and for Skype, it means the days of Hype are over. eBay being a public company makes it impossible for Skype to leak things to some members of the press before it's known to all. Their past "management" of the news won't be able to continue as the SEC guidelines on the stuff under reg F-D are pretty specific. Lastly it means eBay gets Zennstrom, but it also means he may have to come to the USA as a member of their Executive Committee. I mean how long can he stay out of the USA and effectively work, so now with all the cash he will have I guess he can afford a good lawyer on the Kazaa matter that needs to be put to rest once and for all too.For other views check out Mark Evans and Jon Arnold as well as Mr. VON-Jeff Pulver.