BNB

Dan Leahul

Rumours have been swirling around the eBay-camp as CEO John Donahoe recently hinted that the company is willing, if not ready, to sell its lucrative Skype business.

Donahoe, speaking to analysts about eBay's drastic Q4 profits, said Skype was a "great standalone business", which is apparently enough to get industry-insiders buzzing and giddy these days.

However, he also admitted that "synergies" between Skype and the rest of the eBay portfolio were slim, which could plausibly mean: sell, sell, sell.

Despite the slim-synergy, Skype is clearly a winner, and could attract some decent bids, although eBay might have perhaps been a little too enthusiastic when pulling out its wallet for the online-telephone service in 2005, paying $2.6bn.

Some analysts predict Skype could fetch as much as $1bn, which could provide a much needed boost to the suffering internet company, which reported a 30% drop in net profits in the fourth quarter 2008, $367m to $531m.

Dismal, especially after eBay's usual triumphant Christmas season.

On the other hand, Skype continues to impress, with over 400m users around the world (I myself one of them) and recent reports of a 26% rise in revenue.

Just because it can afford anything and everything, Google's name has been associated as a possible interested party, along with major telecom networks Verizon and AT&T.

Should eBay sell? I don't think so, Donahoe admitted Skype wasn't much getting in the way of the eBay business, which is hurting. He should focus on fixing eBay first (cough, PayPal) as it should surely weather the ugly storm that is braced to decimate the digital industry over the next two years, Skype could very well be its water-wings.