eBay Analyst Day: Donohoe: Screw the Synergy, Skype is fine on its own

[Editor: My paraphrase. Mr. Donahoe is more genteel.]

AP's Rachel Metz:

"I think it was an acquisition that had potential, we thought it would have synergy. In the fast-moving Internet world it's turning out not to. I'm being transparent about that," he said.

He wouldn't say whether eBay may eventually sell the unit, saying just that the company will "do what will allow Skype to maximize its success."

New York Times DealBook Blog:

Mr. Donahoe repeated that eBay was wrong in assuming that Skype would “enhance communication between buyers and sellers and reduce friction in the eBay marketplace and payments.” But he also said eBay “was done apologizing” for buying the calling service and that it was a great standalone business.

And when asked by Bits’ Brad Stone if Skype was for sale, Mr. Donahoe smiled and declined to answer directly, Mr. Stone reported.

CNBC's Jim Goldman

At the same time, Donahoe himself admitted that eBay's purchase of Skype, designed to facilitate transactions between buyers and sellers, has failed. But that doesn't mean the business model around Skype isn't compelling. The company has already written down the billions it spent on Skype, and as of today, Donahoe says "We are done apologizing for Skype." Now the challenge will be to turn the unit into a revenue driver.

Forbes' Brian Caulfield:

CEO John Donahoe admits that the company's plans for Skype didn't work.

EBay has finally admitted it. It doesn't have a grand plan to fit its online calling service, Skype, into its e-commerce business. That's OK though, because Skype is starting to look a lot like what eBay used to be.

tags: skype, ebayinc

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photo: ebayink