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eBay sniffing around Skype - report

VoIP service going, going...

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eBay is holding talks with internet telephony outfit Skype concerning a possible deal, according to a report by the Wall Street Journal.

Discussions are still at an early stage with insiders warning that they could end up amounting to nothing. Even so, both Internet companies are reportedly chatting in a deal that would value Skype at between $2bn and $3bn.

So, the big question is this: why would the massive online auction company want to buy a VoIP outfit?

According to the paper, it seems that eBay is aware that the online auction business is maturing and it's looking to develop new areas to generate revenues. eBay is also keen to add other services to its auction business that would help its punters communicate with one another.

Anyhow, no one from Skype was available for comment at the time of writing, while a PR from eBay responded to questioning with a straight bat.

"We don't comment on rumour and speculation," said the spokeswoman. ®

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