Google, eBay and Skype in bed; no sex yet?
Skype gets hooked on Google. What's all this mean?
As Jaanus Kase of Skype puts it, "What does all this mean in detail? We'll see next year, as testing of all these new joint initiatives is said to begin in early 2007. For now, one thing is sure -- great companies working together is always exciting news."
Yes, the Google-Skype story feels very upbeat. It is a tremendous opportunity to monetize their huge customer base. This is bigger than SkypeOut and very scalable.
So do we have to wait till 2007? Will there be no sex? I doubt it. The new Skype-enabled Google Tool Bar is available in the 2.6 Preview Release Jaanus blogged about here.
Big Disclaimer
The formal press release ended on what seemed to me to be an unusual disclaimer,
"At this time, eBay does not expect this agreement will have material impact on its financial statements in 2006 or 2007."
Really? No sex? Let's see later today how Wall Street votes. eBay shares should, in my opinion (just about worthless), get a big boost.
To find out I talked with Don Albert, the North America General Manager for Skype. Don told me:
'Click-to-call' is something we have not done before. It is brand new. We are really excited by it. It is a new revenue stream for eBay it is just too early to predict financial impacts.
But when I asked Don, "How do you rank this relationship as a "big deal" or a "modest deal" relative to the Google-MySpace partnership about two weeks back?" Don gave me this comment:
"I am not too familiar with the terms of the Google-MySpace deal but this deal has enormous potential."
If you are not familiar the Google-MySpace terms looks like this:
As part of the deal, Google is expected to pay Fox at least $900 million in revenue share payments based on certain traffic and other commitments promised by Fox. These payments are expected to be made from the first quarter of 2007 to the second quarter of 2010. Source: Reuters
And you can read what Forbes said about the Google-MySpace deal here.
If you use Google Trends you can get some comparison of MySpace and Skype:

The big picture Don sees is this:
"It's about building new revenue streams. Any other company out there who wants to get in on 'Click-to-Call' better talk to Skype. We have 113 million users they can access. Getting buyers and sellers to connect is a new business model. It is a new way to add value for Skype users."
Ad Free; Spyware Free?
So I asked Don, "Skype has always promised an ad free, spy free application. The idea of a Google Tool Bar has struck the fear of God into some of my fellow skypers. Is this the first step to a change in the Skype philosophy?"
"We have no intention to have ads to the Skype Client unless they add value."
What about brand dilution between Skype and Google Talk?
"Bill, can I walk you through how this works? Users searching using the Skype-enabled Google Tool Bar on the web will be presented with a phone icon. Depending upon the default client they use, they will be presented with a Skype icon or a Google Talk icon. If a user has both clients they may even be given a choice to select the default client they wish to use for "Click to Talk".
What is really happening here?
I have been bombarded today with questions about this deal from readers. Gaurav, a technical guy in India asked this: "I wonder why they collaborate as they have competing products with totally different technologies?"My answer is simple: "How else do you get to be the number one property on the Internet?"
There has been a rage of partnerships lately as the race to dominate the talking, space-sharing, auctioning and search engine markets. Today's eBay/Skype and Google event was just another.
Getting into bed is about moving up this list (from the Forbes article) of hottest Internet properties.
Is today's story just about the foreplay? Who knows for sure? Click-to-Call buyer-seller functionality has arrived! What is important is what Don Albert says, "this deal has enormous potential."


Comments
Look what Google is talking about... interop and open standards with Skype:
http://googletalk.blogspot.com/
Posted by: Rick | August 28, 2006 05:17 PM