Why Ebay Bought Skype

Meg Whitman explains her thought process.

When we evaluate acquisitions, we always ask three questions. Are there synergies? In the case of Skype, a leader in Internet telephony, there are, because our buyers and sellers in high-priced categories like cars told us they wanted to talk to each other. Second, do we like it as a standalone business? And finally, what's the cultural fit? I went to London three times to talk with Skype's management, and I decided that these are very direct people who view the world the way we do. I decided to go ahead. We bought it in October.

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