Skype founder - the master of the mega deal … for himself
Posted by: in Stocks Money NewsFiled under: eBay (EBAY)
In Internet time, eBay’s (NASDAQ: EBAY) $4.3 billion deal for Skype seems like a distant memory (it was about two years ago). Back then, the fast-growing peer-to-peer communications company was the “it” company. It could do no wrong - and would be a killer deal for eBay. Hey, doesn’t eBay know how to cultivate loyal communities?
Maybe so. But, the fact remains that the deal turned out to be a stinker. eBay recently took a write off of $1.4 billion.
Interestingly enough, the cofounder of Skype, Niklas Zennstrom, admitted that the price tag was too high. Yet, at the same time, he thinks Skype will eventually pay off in a big way (he termed it “substantial income”).
In light of his prior statement - and that founders tend to hype things - I’m not sure I would take this to the bank, though.
But, does it really matter? After all, Zennstrom is using is payday to fund a variety of startups, such as Joost.
But if he knocks on your door to sell his one of his ventures, I would try to negotiate a little better than eBay.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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