Business Case Studies, Mergers, Acquisitions and Takeovers Case Study, eBay,Rethinking Skype

print page
Tell A Friend

Case Categories

Mergers, Acquisitions and Takeovers Case Study

Case Title:

eBay: Rethinking Skype

Publication Year : 2008

Authors: Dileep R.Warrier, Lekha Ravi

Industry: Internet and e-commerce


Case Code: MAA0161C

Teaching Note: Available

Structured Assignment: Available

Buy This Case Study

eBay, the online auction giant as part of its expansion strategy, acquired Skype; a popular communication platform for $2.6 billion. eBay’s CEO Meg Whitman had expected the acquisition to enhance their business. However eBay found itself facing a phase of diminishing returns and had to write down Skype by $900 million. The case explores the rationale behind eBay’s purchase of Skype. It also analyses why the synergies of the deal did not materialize as expected. The case study highlights the unrealised synergies of the acquisition.

Pedagogical Objectives:

  • To comprehend the dynamics of online business
  • To grasp the concept of unrelated product diversification
  • To analyse how an integration strategy is vital for online businesses.

Keywords : eBay; Skype; PayPal; Mergers,Acquisitions,Alliances Case Studies; Unrelated product diversification; Positioning; Internet based businesses; Acquisition; Integration; Synergies; Online Business

Contents : 
eBay’s Skype Acquisition: Unrealised Synergies
Skype’s Services
Meg Whitman’s Integration Strategy
Diminishing Returns
Performance of Skype - 2006-2007
Comparison of Skype With Competitors

Recently Bought Case Studies

    Recently Bought Case Studies

    Executive Interviews

  • George G BrenkertGeorge G Brenkert

    Professor of Business Ethics at the McDonough School of Business of Georgetown University
    Speaks on Building Ethical Organizations
  • Dr. Bala V BalachandranDr. Bala V Balachandran

    Dr. Bala V Balachandran, Founder and Honorary Dean of Great Lakes Inistitute of Management
    Speaks on Government and Business
  • Eileen FischerEileen Fischer

    Eileen Fischer, is a Professor of Marketing and the Anne and Max Tanenbaum Chair in Entrepreneurship and Family Enterprise.
    Speaks on Steve Jobs
  • View All Executive Interviews»

Contact us: IBS Case Development Centre (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501203, Telangana, INDIA.
Mob: +91- 9640901313,

©2020 - 25 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap