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eBay Buys Skype After All

Posted by: Rob Hof on September 12, 2005

Well, eBay did it. It’s buying Skype for $2.6 billion. Here’s the press release and one of the first stories. I’m getting on the conference call shortly, so will have more to report soon.

UPDATE: Here’s the eBay presentation explaining why they’re doing the deal.

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Reader Comments


September 13, 2005 09:39 AM

will you please tell me about skype technology and how it works deeply?

Manuel Martins

September 18, 2005 07:51 PM

Hi, bhavin.

Skype works on a Peer-to-peer basis, that is, your computer and everyone else's become the servers, avoiding alltogether the supercomputers that run the internet. You talk directly to me and I talk directly to you. The more people online, the better the system works, like a net, the more it is spread, the more resilient it is. Voice travels pretty much like an attached capsule (like an attached file in your e-mail) and it reaches you in time to became cohorent because those packetts have priority over any other content or files(text, video, music, photos, miscell.) on the internet lines.

That prority is enabled by a special protocol- VoIP- Voice over Internet Protocol - because, deeply, voice is syncronomous and text (and everybody else) can work assycronously.

Deeply, the www program (the one that runs the webpages on the lines) is for free.

More deeply, the e-mail program that sends and collects your messages is also for free.

Even more deeply, why are regular phone calls not for free?

Answer: they are, with Skype.


Manuel Martins You, your computer and the Internet - Open University

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BusinessWeek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, Douglas MacMillan, and Spencer Ante dig behind the headlines to analyze what’s really happening throughout the world of technology. One of the first mainstream media tech blogs, Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.



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