How eBay Can Have $3 Billion in the Bank and Still Be Broke

Look at eBay's books and it wouldn't seem to have money problems. But it's running a garage, unloading would-be Digg competitor StumbleUpon, and hopes to sell Internet phone service Skype. Why? More »

Joost finally abandons desktop app

Online-video startup Joost — whose name we think is Estonian for "trouble" — will cease development of its little-used desktop application and focus exclusively on a long-expected Web-browser plugin. None of which solves Joost's biggest problem: a lack of compelling content. Considering how difficult it was for NBC to convince many to download Microsoft's Silverlight browser plugin for online coverage of the Olympics, it's unlikely that users will flock to download something from an even more obscure company, especially when Adobe is building features similar to Joost's into Flash. More »

Niklas Zennström's vikings raid Irish Sea yacht race

At Skandia Cowes Week on the Isle of Wight, Niklas Zennström's racing yacht Ran won five of seven races amongst the largest class of boats, and won the overall title without having to race on the final day. Zennström joined the competitive yachting class after successfully suckering eBay into buying Skype. His latest project, Joost, however, couldn't generate enough hype to raise the spinnaker, with the online video startup's sails continuing to luft luff in dead winds. (Photo by Rick Tomlinson)

Viacom CEO: Some platforms work, some are like Joost

Viacom helped Joost with its original funding. But the video platform's co-founders Niklas Zennstrom and Janus Friis probably shouldn't expect any more cash from Sumner Redstone's empire. Not after the way Viacom CEO Philippe Dauman took a dainty dump on the service yesterday:

We come at Joost or other platforms from the point of view that we cannot predict—nor did we in that case or any other case—predict which ones are going to be hugely successful, moderately successful, which won't work.

Asked if Viacom will invest again, Dauman demurred: "We did receive equity in connection with our original deal and we're happy where we are." (Photo by AP/Rajesh Nirgude)

Z is for Zuckerberg, the richest of all

Money isn't everything. Mark Zuckerberg may have the highest net worth among his generation of entrepreneurs, but the Facebook CEO only gets 21 out of 294 pages in Sarah Lacy's new Web 2.0 book, Once You're Lucky, Twice You're Good. That's 16 more than his sister, nerd chanteuse Randi Jayne Zuckerberg, which tells us Lacy has her priorities all wrong. The Zuckerbergs' index page: More »

Skype to lay off 30 in European offices

Skype will fire 30 employees in London and Estonia, Om Malik reports. Skype, a subsidiary of eBay, has not yet confirmed the news. The 30 headed for the door will join Skype cofounder Niklas Zennstrom, who in October resigned as Skype CEO as eBay took a $1.4 billion asset-impairment charge on the company it purchased for $2.5 billion in 2005. More »

Skype's failure to make money fast

In an interview just prior to his departure as CEO of Skype, Niklas Zennstrom provided insight into why the internet telephony company was a poor investment for eBay.

Some people may want to monetize faster, but the key is to figure out what is the right speed of monetization. If you act too aggressively, there is a real risk you will lose the huge active user base.

Implicit in this statement is the recognition that Skype needs to make more money off its users, faster. Quite a trick for a free phone service. But still, not moving too fast? It's been four years and Skype has 220 million users! Would Zennstrom wait until Skype has half a billion users? A billion? More »

Skype rains on eBay's parade

Niklas Zennstrom, CEO of Skype, and eBay are paying the price for the disastrous acquisition of the Internet telephony service two years ago. The Skype cofounder has stepped down from his CEO role, and eBay will take a $1.4 billion asset-impairment charge — more than half of the $2.5 billion they paid for the company. The silver lining? eBay only has to pay $530 million of a potential $1.7 billion earn-out to Skype investors, since Skype is performing so poorly. With the shareholder payment out of the way, eBay can more easily put Skype on the auction block. And Zennstrom can focus on Joost, his new online-video venture.