eBay, dumping Skype, faces hard choices

With eBay planning to shed itself of Skype with an IPO, School of Management Professor N. Venkat Venkatraman, chairman of the Information Systems Department, says it’s clear that the Skype acquisition has not paid off for eBay which now has some hard decisions to make.

“Now eBay is faced with tough choices: (1) a spin-out in this market with brutally low valuations; (2) a management buy-out by the original founders in an uncertain time for private equity-based ventures; or (3) find a strategic buyer for it.

“The hottest trend now is the mobile applications marketplace and eBay may find it attractive to find a buyer who is interested in making Skype a central piece in the coming convergence in telecoms.”

Contact N. Venkat Venkatraman, 617-353-7117, venkat@bu.edu

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