eBay Posts Big Growth but Net Loss Thanks to Skype

Skype write-down takes byte out of auction company
By Colleen Barry,  Newser Staff
Posted Oct 18, 2007 5:45 AM CDT
eBay Posts Big Growth but Net Loss Thanks to Skype
eBay, PayPal and Skype pens are seen on display at eBay Inc. headquarters in San Jose, Calif., Wednesday, Oct. 17, 2007.   (Associated Press)

EBay reported strong growth in some sectors despite posting a $936 million net loss for the third quarter, reports the Wall Street Journal. Most of the loss is due to the company writing down internet calling company Skype by $1.39 billion after eBay found it difficult to make money off the operation since its acquisition two years ago. Excluding such one-time costs, eBay pulled in a $564 million profit.

The company's best component was PayPal, which increased revenue by 35% to $470 million. Other strong performers included eBay International, PayPal merchant services, ticketing site StubHub and advertising. "I would say it was a strong quarter," said eBay's CEO. "I don't think there is a silver bullet, but we are doing all the right things." (More eBay stories.)

Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X