When eBay acquired Skype for $2.6 billion last year, the market experts started saying that the auctioneer had overpaid for the acquisition. However, others maintained the auctioneer is sensible on its part. They predicted that Skype would be the best platform to hit Chinese market, which has supposedly billions of potential customers for eBay.
EBay did not gain anything in China through Skype. Incidentally, China is now blocking Skype. The government thinks that existence of Skype is a threat to the Chinese companies.
According to this source, eBay has decided to axe its website in China and replace it with a new site in collaboration with Tom Online. It is expected that any of the Chinese Internet Company would operate the new site. California-based eBay would hold 49 percent stake of the new site.
After USA, China is the second major online market in the world. However, eBay could not strength its position in China.
