Illusion

A wild illusion. The spinning silhouette mostly starts up clockwise for me.

Update (10/14/07): Lots of comments over here at Marginal Revolution. There is a reference to left brain versus right brain dominance, etc., but I’m not too sure … I like the comment about the person that tried filming it backwards … then when played backwards, the person still saw things going in the same direction.  🙂

For My Diary: eBay Impairs Its Skype And Pays Founders

Close to two years ago eBay acquired Skype for $2.6 billion. Today I read the news that the synergies are not playing out (surprise, surprise) and eBay will take charges of $1.4 billion, most of which is attributed to the acquisition writedown. From Bloomberg.com:

EBay, acknowledging that Skype hasn’t performed as expected since acquiring it for $2.6 billion in October 2005, said in a statement today that it will write down the value of Skype by $900 million in the third quarter, as well as take an additional charge of $533 million to pay former shareholders under a provision of the takeover agreement.

To put things in some perspective though, Skype’s second quarter revenue is at $90 million. If you read through my past notes, 2004 revenue was $7M and 2005 revenue was projected (near time of acquisition) to be $60M+.

The Internet serves as a great record for these case studies. It it interesting to read some of stuff bloggers wrote two years ago about this deal. And bloggers like Paul Kedrosky (who seems to tip that the impairment may not be enough) and Om Malik are writing again today.

To digress a bit, I can imagine the discussions that are going on about whether the strategy was flawed or whether there was a failure to execute. I don’t know what the case was here, but I can almost hear chanting from my past colleagues and mentors that there was a failure to execute. Seems like execution failures are blamed more often than strategic failures (for better or worse).