Have Skype and eBay Lost Their Minds?

I hope not.

As an avid Skype user and an eBay shareholder (NASDAQ: EBAY), I hope there is no truth to the rumor that Skype may be considering spending crazy money on acquiring the lackluster Gizmo5. As an eBay shareholder (Skype's current parent company), I can certainly think of better things to be spending capital on than a seemingly desperate competitor that I have to believe must be drowning in red ink. Even if Skype can use some of Gizmo5 tech, they shouldn't overpay.

Having worked with Michael Robertson for six years as President and CEO for Linspire (another Robertson company), I know all his pitch techniques. Skype (or any other possible suitors), as part of any due diligence, should email me to talk. They'll want to review the public history in other "deals" Robertson has made. Skype should get a full accounting of Gizmo5's engineering team and speak with each engineer personally to find out how long they have been there. If it's tech and engineers Skype is looking for, they should make sure Gizmo5 still has any.

Have eBay and Skype lost their minds?

I have to believe this is just a rumor. I simply can't believe eBay and Skype would be interested in Gizmo5, at least not at the ridiculous numbers eluded to in some articles. I wouldn't be surprised if it was Robertson himself floating the rumors that he has suitors, all in an effort to drum up speculation of an acquisition. When Robertson sold MP3.com to Vivendi Universal, it became apparent soon after that Vivendi had paid tens of millions too much. Hopefully eBay and Skype are smarter than Vivendi was back then.

If eBay/Skype would be crazy enough to pay ANYWHERE NEAR $50 M for Gizmo5, then I have some swampland in Afghanistan they might be interested in.

Call me,

Kevin