eBay's Acquisition of Skype - Will the Gamble Work?
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Case Code: BSTR226 Case Length: 18 Pages Period: 2003-2006 Pub Date: 2006 Teaching Note: Not Available |
Price: Rs.400 Organization: eBay Inc. Industry: Internet & e-Commerce Countries: USA, Europe Themes: - |
Abstract Case Intro 1 Case Intro 2 Excerpts
eBay's History
eBay was founded in Silicon Valley by Pierre Omidyar (Omidyar) in 1995. Omidyar, a young software programmer, got the idea of starting an online auction site when his fiancée told him of the problems she had faced when trying to collect Pez dispensers from the San Francisco Bay area. Omidyar used the vast potential of the Internet to develop an online marketplace that allowed person-to-person trading in the auction format. He created a simple business model which allowed buyers and sellers to decide on the value of items and connect with each other, for a small commission for every item placed and sold on the site. Using this model, he started Auction Web (eBay's earlier name), which soon became a popular website. Omidyar wanted the power of the market to stay with individuals and not with companies. He felt that it was important to let users take the responsibility for building a community. He encouraged users to communicate directly with him by email so that he could incorporate their suggestions and resolve the problems they faced on the site...
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