Skype competitor Jajah launched click-to-call buttons that connect potential buyers and eBay sellers, accomplishing an integration into the auction site that Skype hasn't. In response to this affront, eBay last night deleted all auctions with Jajah buttons on them. Reportedly, eBay and Jajah had reached some sort of tentative agreement giving Jajah users the go-ahead to put Jajah buttons on their auctions — but that deal is now clearly dead.
So where does that leave things? eBay screwed up so badly with Skype that some in the Valley say the botched acquisition could burst Facebook's ridiculous valuation bubble. Stifled by eBay's bureaucratic inertia, Skype let a rival beat it on its own home turf.
It's high time for eBay to sell Skype to someone who cares. eBay succeeded with PayPal because it was a natural fit with eBay's customers, both buyers and sellers. But now, the only thing that makes less sense than buying Skype for $2.6 billion is continuing to hang onto it. (Photo by Ryan Fanshaw Photography)