eBay Posts Big Growth but Net Loss Thanks to Skype

Skype write-down takes byte out of auction company
By Colleen Barry,  Newser Staff
Posted Oct 18, 2007 5:45 AM CDT
eBay, PayPal and Skype pens are seen on display at eBay Inc. headquarters in San Jose, Calif., Wednesday, Oct. 17, 2007.   (Associated Press)
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(Newser) – EBay reported strong growth in some sectors despite posting a $936 million net loss for the third quarter, reports the Wall Street Journal. Most of the loss is due to the company writing down internet calling company Skype by $1.39 billion after eBay found it difficult to make money off the operation since its acquisition two years ago. Excluding such one-time costs, eBay pulled in a $564 million profit.

The company's best component was PayPal, which increased revenue by 35% to $470 million. Other strong performers included eBay International, PayPal merchant services, ticketing site StubHub and advertising. "I would say it was a strong quarter," said eBay's CEO. "I don't think there is a silver bullet, but we are doing all the right things."