On September 8th, 2005, I wrote a piece called YahooBay, not SkypeBay, as eBAY prepared to buy Skype. Since then, eBAY has stabilized, their core auction business is doing better, although Skype still remains a relatively unmonetized asset. I hope this changes relatively soon, since I am a shareholder, but I still maintain, it is by and large, non-synergistic, and that money should have been spent elsewhere.
Yahoo’s fortunes, meanwhile, have declined. (Rumor has it, that Private Equity firms are circling above their Sunnyvale headquarters.)
Nontheless, the market caps are not that far apart: $47 Billion for eBAY and $42 Billion for Yahoo.
In the context of my this week’s Web 3.0 discussion, I thought it would be a good time to also bring back the YahooBAY idea.
eBAY’s problems remain the same: lack of synergistic diversification of its core business.
It seems to me, that they really could be a good couple. Where is the matchmaker?