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This excerpt taken from the EBAY 8-K filed Nov 6, 2009. About Skype Skype is software that enables the world’s conversations. Millions of individuals and businesses use Skype to make free video and voice calls, send instant messages and share files with other Skype users. Every day, people everywhere also use Skype to make low-cost calls to landlines and mobiles. This excerpt taken from the EBAY 8-K filed Sep 1, 2009. About Skype Skype is software that enables the world’s conversations. Millions of individuals and businesses use Skype to make free video and voice calls, send instant messages and share files with other Skype users. Every day, people everywhere also use Skype to make low-cost calls to landlines and mobiles. This excerpt taken from the EBAY 10-Q filed Apr 28, 2009. Skype The market for Skype’s products is also intensely competitive and characterized by rapid technological change. We expect Skype’s various communications competitors, including, for example, the providers of online communications products and telecommunications operators, to continue to improve the performance of their current products and introduce new products, software, services and technologies. Many telecommunications firms offer “bundled” services, where a group of services that may include cable or satellite television, internet services (e.g., cable modem or DSL), and telecommunications are offered for a single monthly price. If Skype’s competitors successfully introduce new products, offer “bundled” services or enhance their existing products, this could reduce the market for Skype’s products, increase price competition, or make Skype’s products obsolete, which could lower Skype’s adoption rates, decrease its ability to attract new users or cause its current users to migrate to a competing company. Additionally, several of Skype’s current and potential competitors have longer operating histories, are substantially larger, and have greater financial, marketing, technical, and other resources. Some also have greater name recognition and a larger installed base of customers than Skype has. These excerpts taken from the EBAY 10-K filed Feb 20, 2009. Skype
The market for Skype’s products is also intensely
competitive and characterized by rapid technological change. We
expect Skype’s various communications competitors,
including, for example, the providers of online communications
products and telecommunications operators, to continue to
improve the performance of their current products and introduce
new products, software, services and technologies. Many
telecommunications firms offer “bundled” services,
where a group of services that may include cable or satellite
television, internet services (e.g., cable modem or DSL), and
telecommunications are offered for a single monthly price. If
Skype’s competitors successfully introduce new products,
offer “bundled” services or enhance their existing
products, this could reduce the market for Skype’s
products, increase price competition, or make Skype’s
products obsolete, which could lower Skype’s adoption
rates, decrease its ability to attract new users or cause its
current users to migrate to a competing company.
Additionally, several of Skype’s current and potential
competitors have longer operating histories, are substantially
larger, and have greater financial, marketing, technical, and
other resources. Some also have greater name recognition and a
larger installed base of customers than Skype has.
Skype The market for Skype’s products is also intensely competitive and characterized by rapid technological change. We expect Skype’s various communications competitors, including, for example, the providers of online communications products and telecommunications operators, to continue to improve the performance of their current products and introduce new products, software, services and technologies. Many telecommunications firms offer “bundled” services, where a group of services that may include cable or satellite television, internet services (e.g., cable modem or DSL), and telecommunications are offered for a single monthly price. If Skype’s competitors successfully introduce new products, offer “bundled” services or enhance their existing products, this could reduce the market for Skype’s products, increase price competition, or make Skype’s products obsolete, which could lower Skype’s adoption rates, decrease its ability to attract new users or cause its current users to migrate to a competing company. Additionally, several of Skype’s current and potential competitors have longer operating histories, are substantially larger, and have greater financial, marketing, technical, and other resources. Some also have greater name recognition and a larger installed base of customers than Skype has. This excerpt taken from the EBAY 10-Q filed Oct 23, 2008. Skype
The market for Skype’s products is also intensely
competitive and characterized by rapid technological change. We
expect Skype’s various communications competitors,
including, for example, the providers of online communications
products and telecommunications operators, to continue to
improve the performance of their current products and introduce
new products, software, services and technologies. If
Skype’s competitors successfully introduce new products or
enhance their existing products, this could reduce the market
for Skype’s products, increase price competition, or make
Skype’s products obsolete, which could lower Skype’s
adoption rates, decrease its ability to attract new users or
cause its current users to migrate to a competing company.
Additionally, several of Skype’s current and potential
competitors have longer operating histories, are substantially
larger, and have greater financial, marketing, technical, and
other resources. Some also have greater name recognition and a
larger installed base of customers than Skype has.
Table of Contents
This excerpt taken from the EBAY 10-Q filed Jul 24, 2008. Skype
The market for Skype’s products is also intensely
competitive and characterized by rapid technological change. We
expect Skype’s various communications competitors,
including, for example, the providers of online communications
products and telecommunications operators, to continue to
improve the performance of their current products and introduce
new products, software, services and technologies. If
Skype’s competitors successfully introduce new products or
enhance their existing products, this could reduce the market
for Skype’s products, increase price competition, or make
Skype’s products obsolete, which could lower Skype’s
adoption rates, decrease its ability to attract new users or
cause its current users to migrate to a competing company.
Additionally, many of Skype’s current and potential
competitors have longer operating histories, are substantially
larger, and have greater financial, marketing, technical, and
other resources. Some also have greater name recognition and a
larger installed base of customers than Skype has.
This excerpt taken from the EBAY 10-Q filed Apr 24, 2008. Skype
The market for Skype’s products is also emerging, intensely
competitive and characterized by rapid technological change. We
expect Skype’s various communications competitors,
including telecommunications carriers and the providers of
online communications products, to continue to improve the
performance of their current products and introduce new
products, software, services and technologies. If Skype’s
competitors successfully introduce new products or enhance their
existing products, this could reduce the market for Skype’s
products, increase price competition, or make Skype’s
products obsolete, which could lower Skype’s adoption
rates, decrease its ability to attract new users or cause its
current users to migrate to a competing company.
Additionally, many of Skype’s current and potential
competitors have longer operating histories, are substantially
larger, and have greater financial, marketing, technical, and
other resources. Some also have greater name recognition and a
larger installed base of customers than Skype has.
Table of Contents
This excerpt taken from the EBAY 10-Q filed Apr 24, 2008. Skype
The market for Skype’s products is also emerging, intensely
competitive and characterized by rapid technological change. We
expect Skype’s various communications competitors,
including telecommunications carriers and the providers of
online communications products, to continue to improve the
performance of their current products and introduce new
products, software, services and technologies. If Skype’s
competitors successfully introduce new products or enhance their
existing products, this could reduce the market for Skype’s
products, increase price competition, or make Skype’s
products obsolete, which could lower Skype’s adoption
rates, decrease its ability to attract new users or cause its
current users to migrate to a competing company.
Additionally, many of Skype’s current and potential
competitors have longer operating histories, are substantially
larger, and have greater financial, marketing, technical, and
other resources. Some also have greater name recognition and a
larger installed base of customers than Skype has.
Table of Contents
These excerpts taken from the EBAY 10-K filed Feb 29, 2008. Skype
The market for Skype’s products is also emerging, intensely
competitive, and characterized by rapid technological change.
Many traditional telecommunications carriers, Internet
companies, and cable providers
Table of Contents
offer, or have indicated that they plan to offer, VoIP products
or services that compete with the software Skype provides.
Microsoft recently announced the expansion of its Office
communications suite to include VoIP. We expect competitors to
continue to improve the performance of their current products
and introduce new products, software, services, and
technologies. If Skype’s competitors successfully introduce
new products or enhance their existing products, this could
reduce the market for Skype’s products, increase price
competition, or make Skype’s products obsolete, which could
lower Skype’s adoption rates, decrease its ability to
attract new users or cause its current users to migrate to a
competing company. In addition, some of Skype’s
competitors, such as telecommunications carriers and cable
television providers, are bundling services and products that
Skype does not offer. These include various forms of wireless
communications, voice and data services, Internet access, and
cable television. This form of bundling may put Skype at a
competitive disadvantage if these providers can combine a
variety of service offerings at a single attractive price.
Furthermore, competitors may choose to make their services
interoperable with one another, rather than proprietary, which
could increase the attractiveness of their services relative to
Skype and decrease the value of Skype’s network of users.
Many of Skype’s current and potential competitors have
longer operating histories, are substantially larger, and have
greater financial, marketing, technical, and other resources.
Some also have greater name recognition and a larger installed
base of customers than Skype has. As a result of their greater
resources, many current and potential competitors may be able to
lower their prices substantially, thereby eroding some or all of
Skype’s cost advantage.
Skype The market for Skype’s products is also emerging, intensely competitive, and characterized by rapid technological change. Many traditional telecommunications carriers, Internet companies, and cable providers
Table of Contentsoffer, or have indicated that they plan to offer, VoIP products or services that compete with the software Skype provides. Microsoft recently announced the expansion of its Office communications suite to include VoIP. We expect competitors to continue to improve the performance of their current products and introduce new products, software, services, and technologies. If Skype’s competitors successfully introduce new products or enhance their existing products, this could reduce the market for Skype’s products, increase price competition, or make Skype’s products obsolete, which could lower Skype’s adoption rates, decrease its ability to attract new users or cause its current users to migrate to a competing company. In addition, some of Skype’s competitors, such as telecommunications carriers and cable television providers, are bundling services and products that Skype does not offer. These include various forms of wireless communications, voice and data services, Internet access, and cable television. This form of bundling may put Skype at a competitive disadvantage if these providers can combine a variety of service offerings at a single attractive price. Furthermore, competitors may choose to make their services interoperable with one another, rather than proprietary, which could increase the attractiveness of their services relative to Skype and decrease the value of Skype’s network of users. Many of Skype’s current and potential competitors have longer operating histories, are substantially larger, and have greater financial, marketing, technical, and other resources. Some also have greater name recognition and a larger installed base of customers than Skype has. As a result of their greater resources, many current and potential competitors may be able to lower their prices substantially, thereby eroding some or all of Skype’s cost advantage. This excerpt taken from the EBAY 10-Q filed Oct 29, 2007. Skype
The market for Skype’s products is also emerging, intensely
competitive, and characterized by rapid technological change.
Many traditional telecommunications carriers, Internet
companies, and cable providers
Table of Contents
offer, or have indicated that they plan to offer, VoIP products
or services that compete with the software Skype provides.
Microsoft recently announced the expansion of its Office
communications suite to include VoIP. We expect competitors to
continue to improve the performance of their current products
and introduce new products, software, services, and
technologies. If Skype’s competitors successfully introduce
new products or enhance their existing products, this could
reduce the market for Skype’s products, increase price
competition, or make Skype’s products obsolete, which could
lower Skype’s adoption rates, decrease its ability to
attract new users or cause its current users to migrate to a
competing company. In addition, some of Skype’s
competitors, such as telecommunications carriers and cable
television providers, are bundling services and products that
Skype does not offer. These include various forms of wireless
communications, voice and data services, Internet access, and
cable television. This form of bundling may put Skype at a
competitive disadvantage if these providers can combine a
variety of service offerings at a single attractive price.
Furthermore, competitors may choose to make their services
interoperable with one another, rather than proprietary, which
could increase the attractiveness of their services relative to
Skype and decrease the value of Skype’s network of users.
Many of Skype’s current and potential competitors have
longer operating histories, are substantially larger, and have
greater financial, marketing, technical, and other resources.
Some also have greater name recognition and a larger installed
base of customers than Skype has. As a result of their greater
resources, many current and potential competitors may be able to
lower their prices substantially, thereby eroding some or all of
Skype’s cost advantage.
This excerpt taken from the EBAY 10-Q filed Jul 27, 2007. Skype
The market for Skype’s products is also emerging, intensely
competitive, and characterized by rapid technological change.
Many traditional telecommunications carriers and cable providers
offer, or have indicated that they plan to offer, VoIP products
or services that compete with the software Skype provides. In
addition, many established Internet companies, including AOL,
Google, Microsoft, and Yahoo, as well as newer companies, offer,
or have indicated that they plan to offer in the near future,
products that are similar to Skype’s. We expect competitors
to continue to improve the performance of their current products
and introduce new products, software, services, and
technologies. If Skype’s competitors successfully introduce
new products or enhance their existing products, this could
reduce the market for Skype’s products, increase price
competition, or make Skype’s products obsolete, which could
lower Skype’s adoption rates, decrease its ability to
attract new users or cause its current users to migrate to a
competing company. In addition, some of Skype’s
competitors, such as telecommunications carriers and cable
television providers, are bundling services and products that
Skype does not offer. These include various forms of wireless
communications, voice and data services, Internet access, and
cable television. This form of bundling may put Skype at a
competitive disadvantage if these providers can combine a
variety of service offerings at a single attractive price.
Furthermore, competitors may choose to make their services
interoperable with one another, rather than proprietary, which
could increase the attractiveness of their services relative to
Skype and decrease the value of Skype’s network of users.
Many of Skype’s current and potential competitors have
longer operating histories, are substantially larger, and have
greater financial, marketing, technical, and other resources.
Some also have greater name recognition and a larger installed
base of customers than Skype has. As a result of their greater
resources, many current and potential competitors may be able to
lower their prices substantially, thereby eroding some or all of
Skype’s cost advantage.
This excerpt taken from the EBAY 10-Q filed Apr 25, 2007. Skype
The market for Skype’s products is also emerging, intensely
competitive, and characterized by rapid technological change.
Many traditional telecommunications carriers and cable providers
offer, or have indicated that they plan to offer, VoIP products
or services that compete with the software Skype provides. In
addition, many established Internet companies, including AOL,
Google, Microsoft, and Yahoo, as well as newer companies, offer,
or have indicated that they plan to offer in the near future,
products that are similar to Skype’s. We expect competitors
to continue to improve the performance of their current products
and introduce new products, software, services, and
technologies. If Skype’s competitors successfully introduce
new products or enhance their existing products, this could
reduce the market for Skype’s products, increase price
competition, or make Skype’s products
Table of Contents
obsolete, which could lower Skype’s adoption rates,
decrease its ability to attract new users or cause its current
users to migrate to a competing company. In addition, some of
Skype’s competitors, such as telecommunications carriers
and cable television providers, may be able to bundle services
and products that Skype does not offer. These could include
various forms of wireless communications, voice and data
services, Internet access, and cable television. This form of
bundling would put Skype at a competitive disadvantage if these
providers can combine a variety of service offerings at a single
attractive price. Furthermore, competitors may choose to make
their services interoperable with one another, rather than
proprietary, which could increase the attractiveness of their
services relative to Skype and decrease the value of
Skype’s network of users.
Many of Skype’s current and potential competitors have
longer operating histories, are substantially larger, and have
greater financial, marketing, technical, and other resources.
Some also have greater name recognition and a larger installed
base of customers than Skype has. As a result of their greater
resources, many current and potential competitors may be able to
lower their prices substantially, thereby eroding some or all of
Skype’s cost advantage.
This excerpt taken from the EBAY 10-K filed Feb 28, 2007. Skype
On October 14, 2005, we acquired all of the outstanding
securities of Skype Technologies S.A. (“Skype”), for a
total initial consideration of approximately $2.6 billion,
plus potential performance-based payments of up to approximately
$1.3 billion (based on the Euro-dollar exchange rate at the
time of the acquisition). In addition, we agreed to assume
Skype’s stock options outstanding as of the closing date
and convert them into options to acquire approximately
1.9 million shares of our common stock. The initial
consideration of approximately $2.6 billion was comprised
of approximately $1.3 billion in cash and 32.8 million
shares of our common stock. For accounting purposes, the stock
portion of the initial consideration was valued at approximately
$1.3 billion based on the average closing price of our
common stock surrounding the acquisition announcement date of
September 12, 2005.
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eBay
Inc.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
The shares of our common stock issued in connection with the
acquisition are subject to certain contractual restrictions on
resale. Additionally, the assumed options have been valued at
$64.6 million and were included as part of the purchase
price. We accounted for the acquisition as a non-taxable
purchase transaction, and accordingly, the purchase price was
allocated to the tangible and intangible assets acquired and
liabilities assumed based on their respective fair values at the
acquisition date.
In addition to the initial consideration, the maximum amount
potentially payable under the performance-based earn-out is
approximately €1.1 billion, or approximately
$1.5 billion (based on a U.S. dollar to Euro exchange
rate of $1.32), and would be payable in cash or common stock, at
our discretion. The earn-out payments are contingent upon Skype
achieving certain net revenue, gross profit margin-based and
active user targets. Base earn-out payments of up to an
aggregate of approximately €877 million, or
approximately $1.2 billion (based on a U.S. dollar to
Euro exchange rate of $1.32), weighted equally among the three
targets, would be payable if the targets are achieved over any
four-quarter period commencing on January 1, 2006 through
June 30, 2009. Additional bonus earn-out payments of up to
an aggregate of approximately €292 million, or
approximately $386 million (based on a U.S. dollar to
Euro exchange rate of $1.32), weighted equally among the three
targets, would be payable if Skype exceeds the targets during
calendar year 2008. Any contingent earn-out payments made would
be accounted for as additional purchase price and would increase
goodwill. As of December 31, 2006, the targets had not been
met and accordingly, no payments had been made.
The intrinsic value of Skype’s unvested common stock
options assumed in the acquisition totaled approximately
$55.2 million and was recorded, prior to the adoption of
FAS 123(R), as unearned stock-based compensation. The
unearned stock-based compensation relating to the unvested
options will be amortized on an accelerated basis over the
remaining vesting period of approximately three years,
consistent with the graded vesting approach under FASB
Interpretation No. 28.
The estimated useful economic lives of the identifiable
intangible assets acquired in the Skype acquisition are five
years for registered user technology and trade names, two years
for existing technology, and one year for network access
agreements.
Supplemental information on an unaudited pro forma basis, as if
the Skype acquisition were completed at the beginning of the
years 2004 and 2005, is as follows (in thousands, except per
share amounts):
The unaudited pro forma supplemental information is based on
estimates and assumptions, which eBay believes are reasonable.
The average foreign exchange rates during years 2004 and 2005
were used in preparing the supplemental information. The
unaudited pro forma supplemental information prepared by
management is not necessarily indicative of the results of
income in future periods or the results that actually would have
been realized had eBay and Skype been a combined company during
the specified periods.
This excerpt taken from the EBAY 10-Q filed Jul 28, 2006. Skype
The market for Skype’s products is also emerging, intensely
competitive, and characterized by rapid technological change.
Many traditional telecommunications carriers and cable providers
offer, or have indicated that they plan to offer, VoIP products
or services that compete with the software Skype provides. In
addition, many Internet companies, including AOL, Google,
Microsoft, and Yahoo! offer, or have indicated that they plan to
offer in the near future, products that are similar to
Skype’s. We expect competitors to continue to improve the
performance of their current products and introduce new
products, software, services, and technologies. If Skype’s
competitors successfully introduce new products or enhance their
existing products, this could reduce the market for Skype’s
products, increase price competition, or make Skype’s
products obsolete. For example, Skype’s competitors may
integrate more traditional methods of online communication that
do not involve VoIP technology, such as instant messaging, with
content and functionality that Skype does not have, or that is
superior to Skype’s, which
Table of Contents
could lower Skype’s adoption rates, decrease its ability to
attract new users or cause its current users to migrate to a
competing company. In addition, some of Skype’s
competitors, such as telecommunications carriers and cable
television providers, may be able to bundle services and
products that Skype does not offer. These could include various
forms of wireless communications, voice and data services,
Internet access, and cable television. This form of bundling
would put Skype at a competitive disadvantage if these providers
can combine a variety of service offerings at a single
attractive price. Furthermore, competitors may choose to make
their services interoperable with one another, rather than
proprietary, which could increase the attractiveness of their
services relative to Skype and decrease the value of
Skype’s network of users.
Many of Skype’s current and potential competitors have
longer operating histories, are substantially larger, and have
greater financial, marketing, technical, and other resources.
Some also have greater name recognition and a larger installed
base of customers than Skype has. As a result of their greater
resources, many current and potential competitors may be able to
lower their prices substantially, thereby eroding some or all of
Skype’s cost advantage.
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