Business strategy u-turns: eBay & Skype

eBay’s $3.1bn takeover of Skype will now enter the business history books as another example of a substantial acquisition which destroyed shareholder value.

eBay has just sold a 65% stake in Skype for $1.4bn, leaving it with a minority stake.

The Observer has an article describing the story of why this takeover failed. Its a good example of where the hoped-for synergies between eBay and Skype simply didn’t arise. Now the original eBay business has its own strategic issues to address - so it can do without Skype.