The document discusses eBay's acquisition of Skype. It provides an overview of Skype, highlighting its large user base and viral growth. The acquisition is expected to accelerate eBay's expansion into e-commerce by creating new ways to monetize transactions and removing communication friction. Skype is also described as a great standalone business with a large addressable market and leadership position in voice over internet protocol communications.
Patagonia - Corporate Social ResponsibilityBisher Yousfi
Teams select an organization (on a first come, first serve basis) that according to the team can serve as a model of CSR worth emulating by others. The team will have to justify their selection. This will require among other things for the team to identify the major CSR issues affecting the organization and how it went about addressing them leading the company to be considered exemplary in terms of its CSR performance.
Teams will also be Required to explain what makes this particular organization exemplary in terms of CSR compared to other organizations within and outside of its industry. Finally, teams will be asked to recommend what management of the selected organization can do better to further strengthen its CSR performance.
Presentation time length is approximately 30 minutes including Q&A. It is entirely up to you how you wish to present your project's findings to the class. One group member can act as the spokesperson and present all thirty minutes, all group members can act as a chorus and present, or any combination between the two is also acceptable. It is your presentation and thus it is for your group to decide on the most effective way of conveying and sharing your insights with your colleagues.
Patagonia - Corporate Social ResponsibilityBisher Yousfi
Teams select an organization (on a first come, first serve basis) that according to the team can serve as a model of CSR worth emulating by others. The team will have to justify their selection. This will require among other things for the team to identify the major CSR issues affecting the organization and how it went about addressing them leading the company to be considered exemplary in terms of its CSR performance.
Teams will also be Required to explain what makes this particular organization exemplary in terms of CSR compared to other organizations within and outside of its industry. Finally, teams will be asked to recommend what management of the selected organization can do better to further strengthen its CSR performance.
Presentation time length is approximately 30 minutes including Q&A. It is entirely up to you how you wish to present your project's findings to the class. One group member can act as the spokesperson and present all thirty minutes, all group members can act as a chorus and present, or any combination between the two is also acceptable. It is your presentation and thus it is for your group to decide on the most effective way of conveying and sharing your insights with your colleagues.
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Lupin In Japan- International MarketingHetang Desai
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Performance management at vitality health enterprise incDS Adi Pratomo
We studied and analyse Harvard Business Case on Performance Management for our Post Graduated Business School subject in People in Organization. Do use it as reference and work on your own analysis, but try to avoid copy and paste.
Analysis of Wal-Mart using some Strategic Management tools:
*** Value Chain
*** Strategic Position And Action Evaluation (SPACE)
*** Resource & Capabilities analysis
***
In this presentation, there is some introduction about McDonald's and we have discussed about McDonald's Employee retention techniques and it's importance for other organisation.
Paul Amery. Skype has over 171 million registered users from all 4 corners of the globe. As a developer Skype can provide you with the tools to build you application, and help you market your application to the users. This session presents to you the global opportunity available to developers.
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Join us to discover how Dublin City Council saves 21,000 tradesperson hours, 250,000 printed pages, and 90 administrative hours annually with the power of FME Flow apps. Learn how you too can reduce requests and save time through self-serve data access offered by FME Flow apps, without the hassle and expense of custom coding.
Join Safe and FME Gold Partner, IMGS, and Dublin City Council as we explore the power of FME for delivering web applications. During the hour, we’ll show you how FME users can build progressive web apps. We’ll walk through tangible customer use cases, illustrating how FME empowers field personnel to view allocated jobs, update job statuses, and allow managers to efficiently delegate tasks to their teams.
Don’t miss this opportunity to learn how FME can elevate your organization by enabling dynamic web apps. Register now!
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when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
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how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
2. Legal disclosures placeholder
This presentation contains non-GAAP measures relating to the company's performance. You can find the reconciliation of
those measures to GAAP measures in the tables of our earnings release which is available through our investor relations
website located at http://investor.ebay.com/downloads/Reconciliation.pdf.
In addition, this presentation may contain forward-looking statements regarding matters that involve risk and uncertainty,
including those relating to the future financial results of Skype and eBay, and the impact of the acquisition of Skype on
eBay’s financial results. Our actual financial results could differ materially from those represented in this presentation.
Factors that could cause or contribute to such differences include, but are not limited to, the receipt and timing of the closing
of the transaction, the possibility that the transaction may not close, the reaction of the users of Skype’s services, the future
growth of Skype’s user base, the reaction of competitors and regulatory agencies to the transaction, developments in the
regulation of voice-over-Internet protocol (VoIP) services including those provided by Skype, and the possibility that
integration following the transaction may be more difficult than expected.
More information about factors that could affect the company’s operating results is included under the captions “Risk Factors
That May Affect Results of Operations and Financial Condition” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in the company’s annual report on Form 10-K, quarterly reports on Form 10-Q, and
current reports on Form 8-K, copies of which may be obtained by visiting the company’s investor relations site at
http://investor.ebay.com. Undue reliance should not be placed on the forward-looking statements in this release, which are
based on information available to the company on the date hereof eBay assumes no obligation to update such statements.
2
4. eBay is evolution
• 1996 – 1998: US only, collectibles only
• 1999 – Moving beyond collectibles
• 1999 – Going global
• 2000 – Introducing Fixed Price and eBay Stores
• 2002 – PayPal: removing friction and building a huge new business
• 2004 – 2005: Creating other marketplaces Marktplaats, Mobile, Rent.com,
Shopping.com, Kijiji, ProStores
• Common theme – expanding our vision, our market and our opportunity
• Aspirational goal of growing faster than e-commerce
4
5. High performance company
(Real 2003 $M)
1,000,000
100,000
10,000
1,000
100
10
1
1 5 9 13 17 21 25 29 33 37 41
Years Since
Incorporation
5
6. High performance company
(Real 2003 $M)
1,000,000
100,000
GMV
TPV
10,000
1,000
100
10
1
1 5 9 13 17 21 25 29 33 37 41
Years Since
Incorporation
6
7. Expanding eBay’s share of e-commerce
• Skype will accelerate commerce on eBay
• Skype opens up new lines of business, new
monetization models, new geographies
• A great standalone communications business
• eBay + PayPal + Skype =
Unparalleled e-commerce and communications
engine
7
9. Simply powerful
Any Skype user in the
World (Free)
Internet
9
10. Simply powerful
Any Skype user in the
World (Free)
Internet
Any Regular Telephone in
the World (Low cost)
10
11. Easy to set up and use
1
Download and install
Skype client from website,
get headset
11
12. Easy to set up and use
2
1
Look up and
Download and install
add buddies
Skype client from website,
get headset
12
13. Easy to set up and use
2 3
1
Look up and Start talking with
Download and install
add buddies other Skype users
Skype client from website,
get headset
13
14. Rich functionality
Skype Me…
Find other Skype users
Send any kind of file
Advanced Instant Messaging
Make conference calls
Are you available?
Call any phone
Wallet
Get calls from any Leave voicemail
phone on your
Skype number
Forward calls to any number
14
15. Viral growth
44.1
On track for
32.9
57M
registered
Users in Q3!
19.8
11.5
6.8
4.1
Q104 Q204 Q304 Q404 Q105 Q205
Skype Registered Users (M)
15
17. Historic success
Number of
Reg Users
(MM) 60
50
40
30
20
10
0
1 3 5 7 9 11 13 15 17 19 21 23 25
Months(1)
(1) eBay starts Q2 98, PayPal starts Q1 00, Yahoo! starts Q1 95, AOL since Q1 92 17
(IPO) from company data and Merrill Lynch estimates, Skype since launch in 2003
18. Historic success
Number of
Users (MM)
60
Adding 150K
50
registered
users / day
40
30
20
10
0
1 3 5 7 9 11 13 15 17 19 21 23 25
Months(1)
(1) eBay starts Q2 98, PayPal starts Q1 00, Yahoo! starts Q1 95, AOL since Q1 92 18
(IPO) from company data and Merrill Lynch estimates, Skype since launch in 2003
19. A truly global community
SKYPE users
Non SKYPE users
Skype has a presence Skype is a market leader
in 225 countries and independent in every
territories worldwide major country(1)
19
(1) Skype estimates
20. Significant buzz all over the world…
“To ‘Skype’ is to call someone
over your computer”
USAToday (17 December 2004)
20
22. Accelerating e-commerce
• Accelerate existing
categories
• Expand into new
• Create a new way to
categories
monetize e-commerce
• Monetize new
• Remove a key friction
marketplaces
• Expand the global
footprint
22
23. A new way to monetize e-commerce
eBay with Skype
eBay Today
Transaction
Transaction- and
based lead-generation
monetization
monetization
Listing fees Listing fees
Final value fees Pay
Final value fees
+ per
Feature fees Feature fees call
PayPal fees PayPal fees
23
24. Communication is key to e-commerce
The online transaction process requires various
communication points along the way
“Steve” “Bob” the
the seller buyer
Q+A before purchase
Closing transaction
Order status
24
25. Communication is key to e-commerce
The online transaction process requires various
communication points along the way
“Steve” “Bob” the
the seller buyer
5M e-mail messages are
initiated per day between
eBay buyers & sellers
30% of eBay bids
take place in
the last 2 hours!
25
26. Skype is a leap forward in communication
• In transaction flow
• Instantaneous and private
• Free with rich experience
• Advanced functionality
26
27. eBay has historically removed friction
Solution
Friction point
Trust &
Feedback
safety
Description Pictures
Payments
Shipping
27
29. Accelerating e-commerce
• Accelerate existing
categories
• Expand into new
• Create a new way to
categories
monetize e-commerce
• Monetize new
• Remove a key friction
marketplaces
• Expand the global
footprint
29
30. Skype accelerates certain existing
categories
Motors Business and industrial
Communications can
accelerate categories
that are:
Sporting goods
Collectibles
• High involvement
• Expensive
Music
• Complex Jewelry and watches
instruments
Motors, collectibles,
and B&I alone
represent ~40%
of eBay GMV
30
31. Skype accelerates certain existing
categories: Example
Future motors listing
Firstclassauto – currently online!
“ Firstclassauto – currently online! ”
31
32. Communications enables
expansion into new categories
Skype allows superior
access to categories that
• Require significant
communication
• Are less suited to
transaction-based
monetization
32
Source: Jupiter, Borrell, NADA,
Manheim, eBay estimates
33. Communications enables
expansion into new categories
Skype allows superior
access to categories that
• Require significant
communication
• Are less suited to
transaction-based
monetization
33
Source: Jupiter, Borrell, NADA,
Manheim, eBay estimates
34. Pay Per Call enables monetization of
new marketplaces
Pay Per Call on Local Classifieds
Paris
Listing Sponsorisé
Charles de Gaulle
Renault
Les meilleurs voitures!
Skype moi!
Bagnolet Peugeot
Skype moi!
BelleVille Audi
Skype moi!
34
35. Expanding the global footprint
Cross-border trade
Emerging markets New markets
India China Japan
Nordic
Poland Russia
Brazil
• Large grey markets • Limited eBay • Limited trust
presence
• Limited trust on Internet • Buyers need
• Culture of haggling • Large growth in more interaction
Skype users and information
• Culture of IM/mobile
from sellers
• Price sensitivity
35
38. A great standalone business
A large and growing opportunity
1
A strong leadership position
2
Competitive advantage
3
38
39. An important consumer activity
Minutes
480
per user 500
per 44% of all user
450
month(1) time online is
400
spent
communicating(2)
350
Calls from
435
300
home(3)
250
195 Share of VOIP
200
calls expected
127
150 to increase
significantly
80
100
over time
50 16
45 Skype today
0
Search eBay Web Email IM Phone
marketplace
Communications
Source: (1) Nielsen Netratings averages for biggest sites in
39
each category, (2) eBay estimates from Comscore data, (3)
Yankee Group as of April 2003
41. Increasing penetration
Global Broadband subscribers (M) US Broadband and VOIP households (M)
'04-'09
350
30M VOIP
80
CAGR
households in
317.3 Total
72.3
BB
US by 2009
21.6% 70 66.9
300 287.8
256.9 58.5
60
250
13.8%
223.1
50.1
50
200 185.4
41.1
40
145.7 32.6
150
18.1% 30
24.6
% VoIP
38%
100
20
29%
50 18.8% 10 20%
8% 13%
3%
1%
0 0
2004 2005 2006 2007 2008 2009 2003 2004 2005 2006 2007 2008 2009
United States Europe Asia/Pacific ROW VoIP subscribers Broadband households
41
Source: IDC
42. Increasing usage
1,495
VOIP Annual Minutes of Use (B)
760
367
183
72
42
27
17
10
2001 2002 2003 2004 2005E 2006E 2007E 2008E 2009E
42
Source: IDC
43. A leadership position
Skype’s global revenue base
Other
12%
NA
13%
EU
48%
Asia
27%
% of
total
43
Source: Skype, Sandvine
44. A leadership position
Skype’s global revenue base Skype segment share in North America
Other VOIP
46.2% Skype is #1
12% Minutes
NA
13%
EU
48%
Asia VOIP
Skype is #1
35.8%
27% Users
% of
total
0 20 40 60
Percent of total (%)
Estimated ~25% of
Skype users
are businesses
44
Source: Skype, Sandvine
45. Strong team
• Founders created Kazaa,
were executives at Tele2
• Entrepreneurial senior Niklas Zennström
CEO & Co-Founder
management team from
Tele2, Microsoft, Yahoo!,
OpenWave
• Developers pioneered peer-
to-peer technology
Janus Friis
Co-Founder
45
49. Advanced technology
Virtual, peer-to-peer architecture
brings key advantages
• System is massively scalable
• No single point of failure
• Low CapEx
In addition, Skype has
• Better firewall tunneling that allows
more calls to be completed
• Advanced security and encryption
technology
49
50. Many great applications
Internet Explorer Toolbar - Beta Integration with Outlook - Beta
Web Presence Integration Voice Marketplace
Interactive Language Homework
voice learning tools tutoring
response
50
51. Many great applications
Internet Explorer Toolbar - Beta Integration with Outlook - Beta
Web Presence Integration Voice Marketplace
Interactive Language Homework
voice learning tools tutoring
response
51
53. Many great applications
Internet Explorer Toolbar - Beta Integration with Outlook - Beta
Web Presence Integration Voice Marketplace
Interactive Language Homework
voice learning tools tutoring
response
53
55. Many great applications
Internet Explorer Toolbar - Beta Integration with Outlook - Beta
Web Presence Integration Voice Marketplace
Interactive Language Homework
voice learning tools tutoring
response
55
56. Many great applications
Internet Explorer Toolbar Integration with Outlook
Picture share with Kodak Web Presence Integration
56
57. Many great applications
Internet Explorer Toolbar - Beta Integration with Outlook - Beta
Web Presence Integration Voice Marketplace
Interactive Language Homework
voice learning tools tutoring
response
57
58. Many great applications
Valuable content and services
Voice Marketplace
• Create and share
Interactive Language Homework
innovative voice voice learning tutoring
services response tools
(eg. traffic
• Content providers get a reports)
share of call revenue
Key partners
58
59. Reinforcing ecosystem
1000+ Developers
200+ Hardware devices 200+ Skype-enabled
labeled as Applications
Skype-compatible
30+ partnerships
with world-class
companies
59
60. The power of three
Users invite
other users
New users
invite more
users
60
61. The power of three
Users invite Sellers go where More sellers
other users buyers are offer PayPal
New users
More buyers
Buyers go where
invite more
use PayPal
sellers are
users
61
62. The power of three
Users invite Sellers go where More sellers
other users buyers are offer PayPal
New users
More buyers
Buyers go where
invite more
use PayPal
sellers are
users
eBay Users eBay Users
PayPal Wallet
eBay Usage Skype Users
Skype Users
PayPal Wallet eBay & Skype Usage
Skype-Enabled
Commerce
62
64. Valuation considerations
• Traditional financial valuation methods
– Precedent transactions
– Value per user
– Discounted cash flow
• Earn out structure based on aggressive goals
• A great standalone business, not just VOIP functionality
– Leading market position with considerable momentum
– Technology leadership
– Considerable monetization potential
• Synergistic opportunities with existing businesses
64
65. The power of three: synergistic
opportunities
eBay + Paypal Users
• 157M eBay registered
users
• 79M PayPal accounts
• 1% overlap between
Skype and eBay US
users today(1)
eBay Usage
• 5M email messages/day
• 1.4B new listings/year
PayPal Wallet
• Boosts sales of
premium services
65
(1) Nielsen Netratings
66. The power of three: synergistic
opportunities
eBay + Paypal Users Skype Users
• 157M eBay registered • 54M registered
users users
• 79M PayPal accounts • ~25% of users are
• 1% overlap between business accounts
Skype and eBay US
users today(1)
Skype Commerce
(usage)
eBay Usage
• Skype-enabled
• 5M email messages/day
commerce
• 1.4B new listings/year
• 200+ Skype
hardware
applications
PayPal Wallet
• Boosts sales of
premium services
66
(1) Nielsen Netratings
67. The power of three: synergistic
opportunities
eBay + Paypal Users Skype Users Skype Users
• 157M eBay registered • 54M registered • >80% outside US
users users
• 79M PayPal accounts • ~25% of users are
• 1% overlap between business accounts Skype Usage
Skype and eBay US • Payment of call
users today(1) services
Skype Commerce • Send money to
(usage) buddies
eBay Usage
• Skype-enabled
• 5M email messages/day
commerce
• 1.4B new listings/year
• 200+ Skype
hardware
applications
PayPal Wallet
• Boosts sales of
premium services
67
(1) Nielsen Netratings
68. Transaction summary
Pay $1.3B(1) in cash
•
Deliver $1.3B(1) in eBay stock subject to certain sale
•
Transaction Value
restrictions
and Structure
• Total of $2.6B (4.8% of market cap)
Earn out of up to an additional $1.5B(1,2) based on
•
high active user, gross profit, and revenue goals in
2008
Performance-based
earn out – Earn out participants received less up-front
consideration
– All of management opted for the earn out
• Q4 2005
Expected Closing
68
(1) Based on an exchange rate of € 1.239
(2) Earn-out value presented on an undiscounted basis
69. Strong Business Model
• Large market opportunity
Rapid revenue growth
• Transaction-based revenues
• No inventory or warehouses
• Efficient customer acquisition
Outstanding
• High operating leverage
cash generation
• Low capital requirements
69
(1) Nielsen Netratings
70. Skype revenues
Premium services
Free services
SkypeIn and SkypeOut
Free Skype to
Expressive content
Skype calls
(avatars, ringtones,
ringbacks)
(cost nothing to
provide)
Hardware royalties
70
Voice services
71. Strong Revenue Growth
$259.0
Existing Lines
Of Business $200+
$103.8
$60
$47.4
$12.6
$7 $5.7
(Dollars in millions)
$0.4
2004 2005E 2006E 1996 1997 1998 2000 2001 2002
71
72. Strong Revenue Growth
$259.0
Existing Lines
Of Business $200+
$103.8
$60
$47.4
$12.6
$7 $5.7
(Dollars in millions)
$0.4
2004 2005E 2006E 1996 1997 1998 2000 2001 2002
72
73. Skype revenues
New eBay
Premium services
Free services Opportunities
• Existing eBay Categories
SkypeIn and SkypeOut
Free Skype to
Skype calls
Expressive content
• Emerging markets
(avatars, ringtones,
(cost nothing to
• New geographies
ringbacks)
provide)
• Cross-border trade
Hardware royalties
• New categories
• New marketplaces
(classifieds, 73
shopping.com)
Voice services
74. Leveraged cost structure
• Efficient customer acquisition
– Word of mouth significantly reduces user acquisition cost
• High operating leverage
– Minimal incremental cost for each user call
– Software business model with low fixed costs
• Infinitely scalable network infrastructure with low capex
– Peer to Peer technology requires minimal capex
– Distributed architecture eliminates single point of failure
– Centralized server(s) for authentication for basic services
– Centralized server(s) for premium services, e.g. voicemail
Outstanding cash generation capability
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75. Financial impact
• Dilutive to Q4-05 pro-forma and GAAP EPS by
$0.01 and $0.04, respectively
• Dilutive to 2006 pro-forma and GAAP EPS(3) by
$0.04 and $0.12, respectively
• Breakeven on a pro-forma basis in Q4 2006
• Long term operating margins of 20-25%
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(3) Not adjusted for FAS 123
76. eBay Inc Balance Sheet
• Funding acquisition through internally generated cash flows
• Balance sheet fundamentals remain unchanged:
– Cash reserves of >$1B
– Annualized free cash flows of >$1.5B
– Low capex requirements: ~$2M in 2006
– No long-term debt
• Long-term revenue and profit growth will continue to add to already
strong cash flow position
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77. Summary
• A great standalone business with a very
complementary business model
• Significant growth opportunities:
– Build on Skype momentum
– Accelerate eBay existing and new businesses
– Create entirely new businesses
• The power of 3
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78. The power of 3
Sellers go where
buyers are
Buyers go where
sellers are
More Sellers
Users invite
Offer PayPal
other users
More Buyers
New users invite
use PayPal
more users
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