Skype - can't say to eBay that we told you so....

...cos we weren't blogging at the time. We were a little bit sarky here though, if proof were needed that we thought it wasn't the brightest idea.

Anyway, its now finally been officially admitted that it was a crap deal

From CNet at the time:

Company executives said Monday that eBay plans to pay $1.3 billion in cash and $1.3 billion in stock to the global communications company. It has agreed to hand over up to an extra $1.5 billion, for a total payout of more than $4 billion, if Skype meets certain financial targets by 2008, according to a presentation to investors on Monday morning.

Well, apparently the earnout will be capped at $ 0.5bn, but that's still $2.6bn handed over including $1.3 bn of cash - for a c $60m turnover company.

Lesson - if any was needed - not to hand over so much of the loot upfront.

Mind you, it is very entertaining to go back and read the blogs at the time justifying why the deal was such a great one and how they "got" what eBay was up to