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It was announced this week that EBay has entered into a deal to buy Skype, a voice over IP (VoIP) services on the Internet. According to the report, the deal is worth a total $2.6 billion. The report also stated that Skype generated more than $60 million in revenues this year, but expects an increase to $200 million in 2006. Many see this as a way for EBay to diversify with technology that is still relatively new. Not bad for a company that was started in the living room of Pierre Omidyar.
In 1995, Pierre, a computer programmer, wrote the code for Auction Web in his California home. At first, he placed the code on his personal web page, coincidentally named EBay. In the beginning, EBay was mainly used by the techs themselves as they bought and sold computer parts. As the site grew, more and more people started using it and this year EBay will sell more than $40 billion in goods. Amazingly enough, the price that a lot of dealers place on their goods today are set by EBay, as many of us use it as a resource and benchmark. Little did Mr. Omidyar know how his idea would change the world.