eBay's $2.6 Billion Bet on Skype Doesn't Pay Off

eBay mystified me and many other people when it bought Skype, the Internet telephony startup eBay bought in late 2005 for $2.6 billion plus a potential $1.7 billion incentive payout. I never did quite figure out the connection to eBay’s main business, but I came to think that Skype could become a good business in its own right. Apparently not so much. At least under eBay.

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