The web-based phone service that eBay purchased back in 2005 for $2.5 billion is proving to be more of a bane than a boost to the online auction site, BusinessWeek reports.
EBay admitted that it made a mistake in paying as much as it did last year by at least $1 billion, and despite its rapid growth, Skype’s streak is beginning to slow down.
Revenues shot up twice as much last year as they did in the most recent quarter.
And while Skype has a popular app for Windows mobile, and the iPhone and there are hacks for the iPhone -- no word yet on Google’s Android -- -the mobile market is also tough competition for the service.
The initial thought was that sellers would want to check in with their customers and that this was a personal and convenient way to do that with what it deemed then as "the leader in Internet voice communications."
Turns out there's no time to chit chat. And those who do use Skype only want to talk to other Skype users, which is free.
If Skype can't survive on eBay, it may soon find itself pulled out of the business and into the auction listings.
At eBay, Is Skype There to Stay? [BusinessWeek]
*Photo: Flickr/iain *
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