I was wrong.
I wrote this recently comparing Yahoo’s failure with Geocities to eBay’s success with Skype.
Excerpt: “Anyway, nuts to anyone who says eBay failed by buying Skype [for a tad less than that actually] – at least they are looking to recover some if not most of what they paid, plus it was a cool business to boot.”
I was wrong.
Not about the cool business bit, but the rest of it. Either the founders were greedy or eBay was stupid, but someone screwed up royally.
I’d seen it before but for some reason didn’t quite sink in. Just read this: “Skype buyout in danger of failing” – the previous owners somehow managed to hold onto the key part of the system, the bit that makes it all tick.
This is something even a basic legal or technical DD [due diligence] would’ve picked up. How do you buy a business without making sure you lock in the key technology? That’s like buying a house but letting the seller keep all the keys so you can’t get in. What’s the use then!?
Ironically the ex-owners new company [and Skype IP owner] is called “Joltid” – I bet that has left eBay feeling a bit jolted too!
I still like Skype as a business and brand, but this opens the door for huge change in the arena, either through a new competitor if the sale goes through or for the replacement of Skype entirely.
For tech startups and angel/venture capital investors, it highlights the critical importance of knowing who owns the IP and making sure this is clearly set-out [and thought through] in any deal you do!
Do you think eBay stands a chance against Joltid?
Picture – “Paypal, eBay and Skype” by Thomas Hawk via flickr
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