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Filed under: News, VoIP

eBay to sell Skype in a deal that values it at $2.75 billion

Skype 4.1 beta for Windows
Online auction site eBay purchased internet telephony service Skype for about $4.1 billion in 2005. Today, the company has announced it will sell Skype for about $2 billion. eBay will keep a 35% stake in the company, which values Skype at about $2.75 billion.

Sure, on paper that means that eBay is taking a loss, but honestly, it's still probably a good deal, because as far as anyone can tell, eBay never really figured out what to do with Skype anyway.

Once upon a time there was talking about integrating Skype's VoIP service into the auction site to make communication between buyers and sellers easier. But really, who wants to call a comic book collector halfway around the world to ask questions about that $2.75 first edition Spider-Man #1 comic?

While a number of companies, including Google and Skype's founders, were said to have been interested, it looks like the buyer is an investment group. The deal is expected to go through before the end of the year.

Update: You can read Skype CEO Josh Silverman's brief comments on the deal in the official Skype blog post.

Filed under: Business, Utilities, VoIP

Will a lawsuit spell the end of Skype?

A disagreement about the licensing terms for a key part of Skype's VoIP software has brought a legal battle that's threatening to shut the online phone service down. Don't panic yet if you're one of Skype's nearly 500 million users, though. The trial between Skype's parent company, eBay, and the company that produced the technology, Joltid, is not set for trial until June 2010.

Skype is working to develop its own version of the technology, so the Joltid license won't be necessary anymore. This is expensive and time-consuming, and eBay warns that it might not be successful. However, "Skype is confident of its legal position," so the sky isn't falling just yet. Interestingly, the reporting on this battle doesn't mention what part of Skype runs on the Joltid-licensed software, only quoting eBay as saying that Skype could not exist as is without the technology.

[via CNN]

Filed under: Internet

eBay to eliminate listing fees for casual sellers

eBay listingYou know, I can't remember the last time I wrote an article about eBay fees that wasn't about the company raising fees or angering users. But the latest announcement from the company is that eBay will eliminate listing fees for users that sell fewer than 5 items each month on the online auction site.

You'll still have to pay a sales fee of 8.75% of the final sale price, with a ceiling of $20 (in other words, you won't be charged more than $20 to sell items that have no listing fee).

The new fee schedule is effective June 16th and only applies to auctions, not "Buy it Now" fixed-priced listings.

Filed under: Internet, News

eBay buys into South Korean auction market

Gmarket
Now that eBay is ridding itself of StumbleUpon and spinning off Skype into a standalone company, it can focus on what it does best: auctions and sales. Reuters reports that eBay has offered to buy South Korea's Gmarket for as much as $1.2 billion.

Gmarket is the top e-commerce site in South Korea. Right now Yahoo! owns a 10 percent stake in the company, which it has offered to sell to eBay, which already runs an online auction site in that country. The plan is to combine ebAy's auction site with Gmarket.

Filed under: News, VoIP

eBay to spin off Skype with IPO in 2010

eBay Skype
It looks like Skype will become its own company again next year. But eBay isn't looking to sell Skype back to founders Niklas Zennstrom and Janus Friis, despite recent reports that they were hoping to buy the company again. Instead, eBay put out a press release today announcing that it would separate Skype from eBay and sell it through an IPO (initial public offering) in the first half of 2010.

In the release, eBay CEO John Donahoe admits something that most of us have known since eBay first purchsed Skype for around $3 billion: "Skyper has limited synergies with eBay and PayPal." By separating Skype from eBay and running it as its own publicly traded company, Skype can do what's best for a VoIP company and not have to worry about being attached to an online auction house.

Skype generated $551 million in revenue in 2008, and had 405 million registered users.

[via Techmeme]

Filed under: Social Software, Web

eBay sells StumbleUpon back to... StumbleUpon

StumbleUponA few years ago eBay went on a buying spree and started snatching up companies ranging from Skype to StumbleUpon. While it made plenty of sense for eBay to acquire PayPal, a company that many eBay users were already using to facilitate financial transactions, Skype and StumbleUpon seemed like odd fits.

Sure, you could try to figure out a way to use a social web site discovery tool to promote auctions, and you could use Skype's communication tools to encourage communication between buyers and sellers. But both Skype and StumbleUpon seemed like square pegs in eBay's round hole.

Now hot on the heels of news that Skype's founders are exploring the possibility of buying their company back from eBay comes news that StumbleUpon's founders did buy their company back.

StumbleUpon is now back in th ehands of founders Garret Camp and Geoff Smith and a new group of investors. The official reason for the buyback? Camp says "there were few long-term synergies between the two businesses." We could have told them that two years ago. Oh wait, we did.

[via TechCrunch]

Filed under: VoIP

Skype creators looking to buy it back from eBay

Skype 4
A few years back online auction site eBay purchased Skype for about $3 billion. But the two companies have always seemed like an awkward fit. After all, while in theory it might make sense to integrate Skype's VoIP and chat technology into eBay's site to help facilitate auctions, the truth is that email works just fine for working out the kinks in most transactions. And eBay has never really done very much to integrate Skype with its other services.

Now the New York Times is reporting that Skype founders Niklas Zennstrom and Janus Friis are exploring the possibility of buying Skype back from eBay. It's not clear how much money they'll need to buy the company back, but it seems likely that eBay could let it go for significantly less than it paid for the service.

Filed under: Search, web 2.0

PicClick: Visual browser for ebay and Amazon

PicClick
PicClick is a tool that lets you browse eBay and Amazon product listings by sifting through images rather than text based descriptions. The web app was developed by Ryan Sit, the same guy who brought us ListPic, a visual browser for Oodle classifieds.

The new site works reasonably well. You can click on eBay or Amazon and then pick a category to start looking through images. Drag the slider bar at the top right of the screen if you want to make the images larger or smaller. And you can drag your mouse over an image for more details including the price. Clicking an image will take you to the product page.

You can also search for items and set a minimum or maximum price or limit your search by zip code. Those features only work for eBay searches though, not for Amazon. And some of the Amazon prices are a bit inaccurate. For example, when I searched for Amazon MP3 downloads, every song and album had a $0 price tag. I figured maybe there was a huge sale/promotion going on, but when I clicked through to Amazon, the real prices showed up.

Filed under: Internet, Social Software, Web

Tweebay: What if eBay was powered by Twitter?

TweEbay
Tweebay is an online auction service that uses Twitter to let people know about the items you're selling. Here's how it works. You follow Tweebay on Twitter and you'll receive a direct message to verify your account. Then you can bid on auctions posted on the site or post new listings.

Auction terms should look familiar to anyone who has ever used eBay. You can upload a phoot, set a buy now price, or a reserve price. You can also set a postage price and choose your currency, although right now all listings are in British pounds. In Twitter-like style, you have to keep your descriptions under 240 characters.

There's no feedback, which is one of the things that makes buying and selling from strangers on eBay possible. But since the people most likely to see your Tweebay listings are your Twitter friends, they may trust you enough to buy from you without seeing a feedback rating.

If the site takes off, that feedback issue could become a problem, since there's nothing stopping you from visiting Tweebay.com and looking for auctions from people you don't know (although the lack of a search engine makes the web page only moderately useful). And the site likely faces another problem: trademark infringement. I wouldn't be surprised to see Tweebay change its name to something that sounds a bit less like eBay at some point.

[via TechCrunch]

Filed under: Internet, Web services

eBay lays off 1000 workers, buys Bill Me Later

Bill Me Later
What's the first thing you do after you layoff 10 percent of your workforce? You go on a buying spree, right? That's what eBay appears to be doing anyway. The company, which currently employs about 15,000 people plans to layoff about 1,000 full time workers as well as a number of temporary employees. At the same time, eBay has announced it will spend over $1.3 billion to buy two companies.

First up, eBay will buy Danish competitor DBA for more than $380 million. But the big news for folks who don't live in Denmark is the $945 million the company is spending to purchase Bill Me Later, a company which allows web sites to perform instant credit checks based on your birth date and last four digits of your social security number allowing online retailers to extend you instant credit and send you a bill later.

Bill Me Later's technology will be used to complement eBay's existing PayPal online payment system.

There's no question that eBay needed to do something to deal with increasing competition from Amazon Marketplace and other online stores/auction houses. But I have to say, if I were one of the 1,000+ people getting laid off, I wouldn't be to happy to see my former employer spending this kind of cash on acquiring new properties.

Filed under: Internet, Browsers

eBay launches browser-based price comparison tool

eBay Browser Highlighter
Online auction site eBay has launched a a new tool that makes it easy to find out how much an item is selling for on eBay even when you're visiting another site. It's called Browser Highlighter, and here's how it works. You download and install the tool, and then when you're searching for items on selected sites, a "compare on eBay" button will appear. Click the button and a window will pop up over the web page you're currently reading with a list of eBay items matching the term you were searching for.

Browser Highlighter doesn't work with every site on the web. But it does work with Google and Yahoo! search pages, Google and Yahoo! shopping pages, Amazon, and Nextag. Say for example, you're searching for an iPod. You can search Amazon for iPods, and see a list of items matching your query on Amazon. Then you can click the compare on eBay button to see if you can find a better deal on ebay before making your purchase from Amazon.

The plugin also comes bundled with the Skype browser extension that lets you click any phone number on a web page in order to initiate a call with Skype. This plugin's been available as a separate download for a while. While you can uninstall the Skype plugin once it's installed, there does not appear to be a way to opt out of installing it in the first place if all you want is the Borwser Highlighter.

Browser Highlighter works with Firefox and Internet Explorer and is available for Windows only. eBay plans to release a Mac version that works with Safari soon.

[via TechCrunch]

Filed under: Business, Internet, Web services

eBay to ban checks and money orders in late October

PayPalThere's no question that PayPal is one of the easiest ways to send and receive payments for items bought on eBay. But since the online auction site was founded, users were able to send checks or arrange payments via other methods if they were more convenient. Now all that's about to change.

Starting in about a month, eBay will stop allowing users to send checks or money orders as payment for items purchased on the US version of the site. You'll only be able to pay using PayPal, ProPay, credit or debit cards (if the seller has an internet merchant account), or pay for the item upon pickup.

In January, eBay will make sure all of these options are easily available in the checkout section. For example, you'll be able to enter your credit card information to complete a purchase if a seller is authorized to accept credit cards.

eBay tried to issue a PayPal-only requirement in Australia earlier this year, but regulators ruled that the move would be anti-competitive.

[via Ars Technica]

Filed under: Internet, Search

TypoBuddy Finds Misspelled eBay, Craigslist (?) Deals



TypoBuddy, like previously reviewed TypoTracker, helps you find deals by searching for misspelled variations of the items you search for. Why?

Because most people that search for a particular item will try to spell it right - meaning that listings with typos might go unnoticed, and you'll wind up getting a sweet deal just because some seller was careless enough to not check his or her typing.

It's a great concept, but does it work?

I tried submitting a few queries to both sites, first looking for "thinkpad." Although TypoBuddy told me it had found 100 misspelled matches, clicking through to the eBay results netted only 76 - still very respectable. The search automatically homes in on your locale, so you may need to change locations to get more results.

Read more →

Filed under: Internet, Web services

eBay to de-emphasize auctions, lose all distinctiveness

eBay buy it nowOnline auction site eBay has two things that make it different from every other online store. First, it's a virtual bazaar where anyone can hawk their own goods rather than a traditional storefront where a company maintains and sells its own inventory. Second, as an auction site, there's a chance that buyers will get a real bargain, or that sellers will get more than an item is worth.

For a while now, eBay has been offering sellers the option of selling items for a fixed price. This way both the buyer and the seller know exactly how much money will change hands up front. If you search eBay for pretty much any item now, you'll find a ton of "buy it now" listings amidst the sea of auctions.

But now it looks like eBay wants to change the ratio a bit, by lowering seller fees for fixed priced items. This will do three things:
  1. Make it easier for customers to simply place an order for an item at a specified price instead of waiting a week to find out if they won an auction
  2. Help eBay compete with the thousands of other web stores offering items for fixed prices
  3. Kill off one of the things that really made eBay special
Now, eBay isn't really going to emphasize that last bit. But the truth is, the move sort of turns eBay into half.com (which is already owned by eBay). Sure, a few sellers might decide it's worth selling their items in auctions, hoping that some buyer will forget to comparison shop and pay way too much for an item. But if it's cheaper to just list the item for the price you hope to get, why wouldn't you? And that takes a way a bit of the excitement involved in the bidding process.

Then again, with so many people using eBay, when was the last time you really got a bargain as a buyer?

Filed under: Windows, Freeware, Browsers

Lauge - A Browser For eBay Junkies!



If you happen to buy or sell on eBay frequently, the Lauge custom browser is an interesting tool you'll want to check out.

Lauge sports a ton of functionality that makes using eBay less bothersome. The search tab provides a handy tree view of all eBay categories and makes navigation around the site a snap; favorite your go-to categories to access them quickly later. It also includes a simple keyword search and seller search with results filtering options.

Once you've selected a category to browse, Lauge activates the gallery view which provides a thumbnailed view of all eBay gallery items. It's a great visual tool for separating the wheat from the chaff in a hurry. Item listings can be sorted in the same ways as on eBay's site, and you can fully customize which columns you'd like displayed in the results pane. Some options, like item condition (which would be truly useful) don't yet display, though that may have more to do with sellers not specifying it in the first place.

Lauge also handles tabbed browsing, making it easy to switch back and forth between items or categories. On the downside, the panes aren't resizable which can make the item view a bit cramped. Clicking the orange "eject" button will open a full screen view that remedies the situation and lets you view the item in detail as you would on eBay.

Lauge supports English and German, and requires the MSXML 4 download.

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