Wednesday, June 14, 2006

 

Skype and Ebay

A while back, Skype, the VoIP telephony company was bought by Ebay - two very different companies employing very different business models. Skype enables users around the world to talk to each other for free, and it has proved a huge success. At time of writing, 4 million users are logged on to the service. The difficulty is the "free" bit - how does Skype make money from this?

Now Ebay is looking at incorporating Skype into its online auction website. In addition it's looking at integrating Skype with PayPal - the Ebay owned online clearing house.

It's an interesting example of how software companies attempt to derive synergies from separate offerings. Whether this particular example will prove successful in the long run is another thing entirely.

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