What Google would do with Skype that eBay won't

by Ted Wallingford Nov 20th 2007

Yeah, we know this is just a rumor, but it has quickly bubbled to the top of the VoIP blogosphere, and the ramifications are looming large. Skype may be on eBay's auction block (no pun intended). Among the potential buyers for such a property are the usual suspects--Microsoft, Google, Yahoo, and even Facebook if they could afford it. But the excitement about Google seems to be the most fervent. Here's why.

Google is a platform company. Their platform is all about monetizing other people's content. They do it by providing self-service solutions that capture revenue generated on the backs of other content producers. One of their clarion calls has always been--increase use to increase revenue. And nobody does this better than Google.

It was for this reason--increasing use--that eBay invested in Skype. But post-merger politics ruined the exciting possibilities. We never got widespread adoption of Skype on eBay because in order to promote Skype, eBay must also have allowed Skype's competitors (or at least refrain from blocking their use on the site). That was never going to work. The 1.0 mentality at eBay was just too pervasive, even with such a future-bright asset like Skype.

Google, on the other hand, opens just about everything up. So Google's idea of competing is to show the competition exactly what they're holding, source code and all. And that's the crux of it--if Google does get its hands on Skype, count on getting access to Skype you previously never dreamed of: full-blown APIs, web service models, the specs for the Skype signaling protocol, and yes, almost certainly, source code.

Tags: ebay, google, skype, voip

Reader Comments (Page 1 of 1)

MAF said 2:23PM on 11-20-2007

This and GrandCentral could be interesting together.

Todd said 2:33PM on 11-20-2007

Skype would be a great "dialer GUI" to put on top of Android. Lots of people already know how to use it, easy to learn for those who don't.

By buying it, Google would inherit all the back-end connectors and legal bits for calling on lines owned by the telcos worldwide.

Skype running 700MHz WiFi - you want it.

Jason said 2:44PM on 11-20-2007

I don't like the idea of a VOIP phone applications source code being available... Skype is already a pier to pier plaform... the last thing anyone wants is hackers to get access to something like thats source code and be able to easily create apps to listen in on conversations through the app! It would make skype useless...

michael said 4:33PM on 11-20-2007

Gosh, you guys are such Google fanboys. Really, 75% of the news on this site is Google-related.

It's as if none of the other web companies can't make something cool and decent. Sheesh.

Google always gets it right, right?

Steve A Rino said 7:05PM on 11-20-2007

I think Skype is a great tool, but I personally have hated Ebay since I got ripped off the first time I used it. Google seems to be on a roll of creativity and appears to be trying to open up communications worldwide. i think they have done a great service in opening our eyes about how the telcos have been shafting us, and along with Apple, are forcing change in the system. But these other guys are big and every politician and party has their hand in their pocket. Google is in for a real fight, but I'm backing them because they are on the side of truth and justice....

xevia said 8:00PM on 11-20-2007

I am not a huge fan of Skype, I know most people love it but I found it irritating when I installed it :(

http://www.happykeg.com

Ryan said 8:53PM on 11-20-2007

Can you say Google Talk upgrade??

nat said 10:41PM on 11-21-2007

"Gosh, you guys are such Google fanboys. Really, 75% of the news on this site is Google-related.

It's as if none of the other web companies can't make something cool and decent. Sheesh.

Google always gets it right, right?"

GTFO. Im tired of people flaming bloggers on this site for writing good articles which this is. Google is kinda big news in internet world... dunno if u noticed?

While I accept 75% is an exaggeration for effect, go get some perspective, this site offers a LOT of coverage for small sites and new technologies not google related.

Mysterius said 4:49AM on 11-22-2007

@michael: There's plenty of news about the web in general; can Download Squad help it if much of that is Google-related? ;)

Besides, the old Google blog was merged into Download Squad, so if Weblogs wanted to keep the old readership, they have to continue offering Google news.

(And the fact that the news on the Google and Download Squad blogs was so closely linked should tell you something...)

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