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Beware The VoIP Bubble

eBay's reported buyout offer for Skype for up to $3 billion shows that VoIP may prove to be as big a bubble as the Internet had been. In fact, Skype will be the poster child for the bubble, just as...
September 08, 2005

eBay's reported buyout offer for Skype for up to $3 billion shows that VoIP may prove to be as big a bubble as the Internet had been. In fact, Skype will be the poster child for the bubble, just as the Pets.com sock puppet was a symbol of Internet stock excesses.
Is the VoIP startup really worth up to $3 billion, when there are already larger competitors like Vonage out there, and when major telecom companies are all preparing their own VoIP offerings?
Of course not. Skype would do well to sell out now, while they can get a massively inflated price for the company. For them, it's time to party like it's 1999. Their buyer gets only a hangover.

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