eBay Taps into Lucrative Internet Phone Market

ONLINE auction house eBay yesterday tapped into the lucrative internet phone market by unveiling a $2.6bn (pounds 1.4bn) deal for leading provider Skype.

EBay said the purchase of Skype, which allows people to make free calls over the internet, would improve communication between buyers and sellers using its website.

It is thought Skype could be integrated into eBay’s software – in the same way that online payment firm PayPal became an integral part of the auctioneer’s services when it was bought by eBay.

The purchase of Skype will give eBay a foothold in the fast- growing internet phone market alongside players such as Google, which recently launched a new service called Google Talk.

Skype’s technology allows users to communicate free of charge using their computers and make cheaper calls to landlines and mobiles.

EBay said the move would increase the amount of trade on eBay – particularly in areas that require more detailed communication, such as used car sales.

Chief executive Meg Whitman said the combination of eBay, its online payment firm PayPal and Skype would create an “unparalleled set of assets” on the internet.

The company said: “Buyers will gain an easy way to talk to sellers quickly and get the information they need to buy, and sellers can more easily build relationships with customers and close sales.”

A spokeswoman said it was too early to say exactly how Skype and eBay services would be combined.

Luxembourg-based Skype claims to be the fastest-growing provider of internet calls, with more than 54 million registered users worldwide.

The deal will represent a major windfall for Skype’s Swedish founders Niklas Zennstrom and Janus Friis, who set up in 2003