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In an article from the Times EBay admitted that it over paid for the internet telephone company Skype. EBay spent 2.6 billion dollars in 2005 to acquire the company and it still has yet to show a profit. Even though the there are currently about 200 million Skype users, EBay execs have failed to find away to entice them to use the paid services in numbers that will improve the profitability of the company.

Now that Vonage may be out the door due to the lawsuit with Verizon Skype may very well have a shot – that’s of course if Verizon doesn’t go after them next?

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EBay headquarters


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