Sep 122005

Reality Bites

Reality Bites

So Oracle is buying the $1.5 billion revenue Siebel for $5.85 billion, and eBay is buying the at most $60 million revenue Skype for $2.4 billion, which could grow to $4.1 billion if Skype hits some performance targets.  Huh.  Must be all those pesky customers, receivables, and assets bogging down Siebel’s books.

UPDATE:  Fortune’s David Kirkpatrick, one of the most insightful journalists covering technology, makes some sense of this in this week’s Fast Forward column.

  • Niki Scevak

    Don’t forget that Siebel had over $2bn in cash, so the acquisition prices were essentially the same (~$3bn if the low end of the earn out on Skype is reached).

    The difference between a company on the way up and on the way down!