Timely reality check -- but Skype is still an amazing success in VoIP
The Skype deal helped to initiate a renewed acquisition frenzy in the online world, and a return to what some call a bubble mentality. After the spectacular dot-com flameout seven years ago, Internet executives pledged to begin judging technology companies by revenue rather than by something as ephemeral as “eyeballs,” or traffic on a Web site.
But somewhere along the line, the high-tech industry reverted to its old form.
“We are almost going back to year 2000 types of errors,” said Aaron Kessler, a senior Internet analyst at Piper Jaffray. Internet companies “are buying users instead of revenue and profitability. That’s what eBay did for Skype. They saw a great asset with tons of users but no clear monetization path.”