eBay had some good news for its investors this week. The online giant expects its subsidiary, Skype, to generate $1 billion in revenue in the year 2011.
Many thought eBay paid too much when it bought Skype for $2.6 billion in 2005, but this news may thumb a nose at naysayers. You can’t blame their hesitation, though. You may remember that Skype was making less than $100 million a year at the time of the purchase.
So why the expected growth? eBay says Skype “further establishes leadership in free and paid internet-based voice and video communications, with growth opportunities in core consumer, mobile, businesses and platform.”
