Acquisition of Skype Essay Example | Topics and Well Written Essays - 2500 words - 1

Acquisition of Skype - Essay Example In case of a merger, firms come together for combining and sharing their resources with the purpose of attaining the common objectives. On the other side, in an acquisition one corporation purchases the shares or assets of another corporation. Shareholders of the acquired firm lose their ownership (Sudarsanam, 2003). They have been taking place in the business world over the past century. It is one of the most effective strategies in the present intensely competitive business scenario. Details related to the source of finance, risk related to this acquisition and various tactics regarding defense are also provided in this paper. eBay is one of the most successful companies in the world of e-commerce. It has changed the definition of e-commerce business with its popular websites like eBay Marketplace, Kijiji, Paypal, Shopping.com, and Rent.com. Every day these websites bring millions of sellers and buyers together. The company was founded in 1995. It is a company that is inspired by opportunity and sustained by the trust (eBay, 2005). Skype, on the other hand, is renowned as a leading name in the arena of global internet communications. With its high end peer-to-peer innovative software, Skype allows people to make unlimited, superior quality, free voice calls. Its award-winning software can be used in different platforms like Windows, Linux, Pocket PC platforms and Mac OSX. It was launched in 2003 and within two years it was downloaded over 182 million times throughout the world. There are 27 languages in which Skype is available (eBay, 2005). Â