eBay Mergers and Acquisitions Presentation Deck

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#1ebay PayPal skype Acquisition of Skype#2Legal disclosures placeholder This presentation contains non-GAAP measures relating to the company's performance. You can find the reconciliation of those measures to GAAP measures in the tables of our earnings release which is available through our investor relations website located at http://investor.ebay.com/downloads/Reconciliation.pdf. In addition, this presentation may contain forward-looking statements regarding matters that involve risk and uncertainty, including those relating to the future financial results of Skype and eBay, and the impact of the acquisition of Skype on eBay's financial results. Our actual financial results could differ materially from those represented in this presentation. Factors that could cause or contribute to such differences include, but are not limited to, the receipt and timing of the closing of the transaction, the possibility that the transaction may not close, the reaction of the users of Skype's services, the future growth of Skype's user base, the reaction of competitors and regulatory agencies to the transaction, developments in the regulation of voice-over-Internet protocol (VoIP) services including those provided by Skype, and the possibility that integration following the transaction may be more difficult than expected. More information about factors that could affect the company's operating results is included under the captions "Risk Factors That May Affect Results of Operations and Financial Condition" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, copies of which may be obtained by visiting the company's investor relations site at http://investor.ebay.com. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to the company on the date hereof eBay assumes no obligation to update such statements. eby PayPal skype 2#3The acquisition of Skype ebay PayPal skype eby PayPal skype 3#4eBay is evolution 1996 - 1998: US only, collectibles only 1999 Moving beyond collectibles 1999 Going global - 2000 - Introducing Fixed Price and eBay Stores 2002 - PayPal: removing friction and building a huge new business 2004 - 2005: Creating other marketplaces → Marktplaats, Mobile, Rent.com, Shopping.com, Kijiji, ProStores Common theme - expanding our vision, our market and our opportunity Aspirational goal of growing faster than e-commerce eb Y PayPal skype 4#5High performance company (Real 2003 $M) 1,000,000 100,000 10,000 1,000 100 10 1 5 9 DELL Microsoft STARBUCKS COFFEE CISCO SYSTEMS YAHOO! eb Y PayPal skype 13 17 21 25 29 33 37 Years Since Incorporation WAL MART 41 5#6High performance company (Real 2003 $M) 1,000,000 100,000 10,000 1,000 100 10 1 PayPal TPV PayPal Google 5 ebay GMV eby 9 YAHOO! eby PayPal skype DELL Microsoft STARBUCKS COFFEE CISCO SYSTEMS T 13 17 21 25 29 T 33 37 Years Since Incorporation WAL MART 41 6#7Expanding eBay's share of e-commerce ● ● ● ● Skype will accelerate commerce on eBay Skype opens up new lines of business, new monetization models, new geographies A great standalone communications business eBay + PayPal + Skype Unparalleled e-commerce and communications engine eb Y PayPal skype = 7#8Agenda What is Skype? Expanding eBay's share of e-commerce A great standalone business Financials eb Y PayPal skype 8#9Simply powerful 80 OPWED skype eb Y PayPal skype Internet skype Any Skype user in the World (Free) 9#10Simply powerful 80 OPELEN skype eb Y PayPal skype Internet skype Any Skype user in the World (Free) Any Regular Telephone in the World (Low cost o#11Easy to set up and use Download and install Skype client from website, get headset skype Home Produc Ovendew Skype for Windows Download Screenshots EAQ The whole world can talk for free. Skype for Mac 05.X Skype for Linss Shape for Packet PC StypeOut Skypeln BETA Sbae Velsemall Skype Toalhan BLIA Skype Zenes ELTA 1 155,635,404 downlo Download Community Stere Help Company Skype for Windows Download Skype for Windows (7.2 MB) M To download Skype to your computer, simply click the download ink above and save the installation file to your computer. Be sure to remember where you saved the file (the desktop might be a good place). Once the file has downloaded completely, please open the folder containing the file you downloaded. Double-click the installation file you just downloaded to start installing Skype on your computer. 890 No System Regements In order to use Skype for Windows software, your computer must meet the following minimum system requirements: PC running Windows 2000 or XP 400 MHz processor 128 MB RAM 15 MB free disk space on your hard drive Sound Card, speakers and microphone Internet connection. Any broadband connection or minimum 33.6 Kbps dalup. GPRS is not supported for voice calls. Results may vary on a eb Y PayPal skype 11#12Easy to set up and use Download and install Skype client from website, get headset skype Home Overview Skype for Windows Download EAQ Shape for Mac 05.X Shape for Lis Shan for Packet PC Stape Skapele BETA Shan Velsemail Shape Testhan BETA Skyps Zones BETA 1 The whole world can talk for free. Product Download Community Skyne for Windows 155,635,484 dina 2 Store Help Company Download Skype for Windows (7.2 MB) To download Skype to your computer, simply click the download Ink above and save the installation file to your computer. Be sure to remember where you saved the file (the desktop might be a good place). Once the file has downloaded completely, please open the folder containing the file you downloaded Double-click the installation file you just downloaded to start installing Skyp on your computer Han No In order to use Skype for Windows software, your computer must meet the following minimum system requirements: PC running Windows 2000 or xp 400 MHz processor 128 MB RAM 15 MB free disk space on your hard drive Sound Card, speakers and microphone Internet connection. Any broadband connection or minimum 33.6 Kbps dalup. GPRS is not supported for voice calls. Results may vary on a eb Y PayPal skype 2 Look up and add buddies S Skype" Add a Contact Add a Contact Enter the Skype Name or telephone number you wish to add Allow this user to see when you are online Search for people if you don't know their Skype Name Import Contacts from your addressbooks Previous Ex: mike1234 or +12125551212 Next > X Cancel 12#13Easy to set up and use Download and install Skype client from website, get headset skype Home Overview Skype for Windows Download EAQ Shape for Mac 05.X Skype for Liss Shop for Packet PC Ste Shape BETA Shan Veismail San Teahan BLIA Shyan Zemes DETA 1 The whole world can talk for free. Product Download Community Skype for Windows 155.635,404 drit Stere Help Company Download Skype for Windows (7.2 MB) To download skype to your com computer, simply click the download Ink above and save the installation file to your computer. Be sure to remember where you saved the file (the desktop might be a good place). Once the file has downloaded completely, please open the folder containing the file you downloaded. Double-click the installation file you just downloaded to start installing Skype on your computer Han No In order to use Skype for windows software, your computer must meet the following minimum system requirements: PC running Windows 2000 or xp 400 MHz processor 120 MB RAM 15 MB free disk space on your hard drive Sound Card, speakers and microphone Internet connection. Any broadband connection or minimum 33.6 Kbps dalup. GPRS is not supported for voice cells. Results may vary on a eb Y PayPal skype 2 Look up and add buddies S Skype" Add a Contact Add a Contact Enter the Skype Name or telephone number you wish to add Allow this user to see when you are online Search for people if you don't know their Skype Name Import Contacts from your addressbooks Previous Ex: mike1234 or +12125551212 Next > X Cancel Start talking with other Skype users 3 Skype (BETA) mikeymike 80eanch Start&Contacts Ducal List Skype Contacts (4/12) dongoz Cheong Wey Wong Denis Koundin Janet Banner 3 kimberlyhart Vandaan wasish SkypeOut Contacts (0/6) Call The Contact 2at Chat Send Contact Send Fie View Profile Renan A Sod-w Block The User View Chat Hary ew Cal List 40x 287 AC3 Users Online 13#14Rich functionality Find other Skype users Advanced Instant Messaging Are you available? Call any phone Get calls from any phone on your Skype number eb Y PayPal skype Skype Me... S Skype™ (BETA) - megatwork File View Tools Call Help DO A T Add Contact Search Conference Chat Send File Contacts # Dial Skype Contacts (4/13) Henry Gomez Rajiv Dutta 1 new event Services Call List Saul Klein | new BETA skype.com/go/download Tracey Ford Alex Kazim Niklas Zennström | GMT William Martin-Gill Saratoga, United States Online Your SkypeOut account is activated Your Voicemail account is activated Your SkypeIn account is activated OX >> € 10.00 2,877,266 Users Online Send any kind of file Make conference calls Wallet Leave voicemail Forward calls to any number 14#15Viral growth 4.1 Q104 6.8 On track for 57M registered Users in Q3! Q204 eb Y PayPal skype 11.5 Q304 19.8 Q404 Skype Registered Users (M) 32.9 Q105 44.1 Q205 15#16Viral usage 0.3 Q104 0.5 Q204 eb Y PayPal skype 67% CQGR! 0.9 Q304 2 3.3 Q404 Q105 Skype Quarterly Minutes Served (B) 3.9 Q205 16#17Historic success Number of Reg Users (MM) 60 50 40 30 20 10 0 1 3 5 7 9 eby PayPal skype 11 13 15 17 19 21 23 ebay. PayPal YAHOO! MERIC Online 25 Months (1) (1) eBay starts Q2 98, PayPal starts Q1 00, Yahoo! starts Q1 95, AOL since Q1 92 17 (IPO) from company data and Merrill Lynch estimates, Skype since launch in 2003#18Historic success Number of Users (MM) 60 50 40 30 20 10 0 1 3 5 7 9 eb Y PayPal skype 11 13 Adding 150K registered users / day 15 17 19 21 skype 23 ebay. PayPal YAHOO! Online 25 Months (1) (1) eBay starts Q2 98, PayPal starts Q1 00, Yahoo! starts Q1 95, AOL since Q1 92 18 (IPO) from company data and Merrill Lynch estimates, Skype since launch in 2003#19A truly global community SKYPE users Non SKYPE users Skype has a presence in 225 countries and independent territories worldwide eb Y PayPal skype Skype is a market leader in every major country(1) (1) Skype estimates 19#20Significant buzz all over the world... PC MAGAZINE www.com.com The Washington Post abc The McGraw-Hill Companies BusinessWeek San Francisco Chronicle NORTHERN CALIFORNIA'S LARGEST NEWSPAPER Ap Associated Press eb Y PayPal skype DOWIONES The New York Times ON THE WEB "To 'Skype' is to call someone over your computer" IDG INTERNATIONAL DATA GROUP W1 RED USA Today (17 December 2004) Le Point La Tribune THE USA INDEPENDENT TODAY San Jose Mercury News TECHNOLOGY ADVICE YOU CAN TRUST PC WORLD BBC TIME cnet 20#21Agenda What is Skype? Expanding eBay's share of e-commerce A great standalone business Financials eby PayPal skype 21#22Accelerating e-commerce Create a new way to monetize e-commerce Remove a key friction eb Y PayPal skype ● ● Accelerate existing categories Expand into new categories Monetize new marketplaces Expand the global footprint 22#23A new way to monetize e-commerce eBay Today Transaction- based monetization Listing fees Final value fees Feature fees PayPal fees eb Y PayPal skype eBay with Skype Transaction and lead-generation monetization Listing fees Final value fees Feature fees PayPal fees + Pay per NEW! call 23#24Communication is key to e-commerce The online transaction process requires various communication points along the way "Steve" the seller eby PayPal skype Q+A before purchase Closing transaction Order status "Bob" the buyer 24#25Communication is key to e-commerce The online transaction process requires various communication points along the way "Steve" the seller eb Y PayPal skype 5M e-mail messages are initiated per day between eBay buyers & sellers 30% of eBay bids take place in the last 2 hours! "Bob" the buyer 25#26Skype is a leap forward in communication ● ● In transaction flow Instantaneous and private Free with rich experience Advanced functionality eb Y PayPal skype 26#27eBay has historically removed friction Friction point Trust & safety Description Payments Shipping eby PayPal skype Solution Feedback (138) Pictures PayPal UNITED STATES POSTAL SERVICE thong M P ebay in hostaty NOUCHAGE Pney Howe prodowe USPS PRIORITY MAIL® 27#28Removing friction is powerful eBay UK GMV (USD) Q1 Q2 Q3 Q4 Q1 2001 eb Y PayPal skype Q2 Q3 2002 Q4 Q1 PayPal Q2 Q3 2003 Q4 Q1 Q2 Q3 2004 Q4 $1.4B Q1 2005 28#29Accelerating e-commerce ● ● Create a new way to monetize e-commerce Remove a key friction eb Y PayPal skype ● Accelerate existing categories Expand into new categories Monetize new marketplaces Expand the global footprint 29#30Skype accelerates certain existing categories Communications can accelerate categories that are: ● High involvement Expensive Complex eby PayPal skype Motors Collectibles Music instruments Business and industrial AB Sporting goods Jewelry and watches Motors, collectibles, and B&I alone represent -40% of eBay GMV 30#31Skype accelerates certain existing categories: Example Future motors listing ay Motors Home Browse Search I Sell Contact Back to list of items Listed in category: eBay Motors > Passenger Vehicles > Audi > A4 2002 Audi A4 A4 QUATTRO You are signed in Live Help Chat online with an eBay Motors specialist about buying vehicles. You have emailed this item to a friend. 1 of 24 skype "How To" Center! Services Current bid: eb Y PayPal skype US $12,850.25 (Reserve not met) Reserve The seller lowered the reserve price. Learn more. Place Bid > Get low monthly payments Buy It Now price: US $15,900.00 E-mail: [email protected] Item number: 4572314101 This item is being watched in My eBay (1 item) | Email to a friend Buy It Now The seller lowered the Buy It Now price. Learn Lowered more. Buy It Now > Firstclassauto-currently online! Seller information. firstclassauto (47) Feedback Score: 47 Positive Feedback: 96.1% Member since Apr-27-02 in United States Read feedback comments Add to Favorite Sellers Ask seller a question View seller's other items Vehicle Purchase Protection up to $20,000. Programs and terms Firstclassauto – currently online! 31#32Communications enables expansion into new categories Skype allows superior access to categories that Require significant communication Are less suited to transaction-based monetization ● ● eby PayPal skype Source: Jupiter, Borrell, NADA, 32 Manheim, eBay estimates#33Communications enables expansion into new categories Skype allows superior access to categories that Require significant communication Are less suited to transaction-based monetization ● ● eb Y PayPal skype $0.5 B $0.5 B $0.7 B $1.8 B Advertising Market New and Used Cars Travel Services Real Estate Source: Jupiter, Borrell, NADA, 33 Manheim, eBay estimates#34Pay Per Call enables monetization of new marketplaces Pay Per Call on Local Classifieds kijiji Paris Rechercher : Affiner les résultats Résultats affinés par : Voitures annuler Autos, Motos, Bateaux annuler Type : Offrant (2115) Recherchant (57) Listing Sponsorisé Charles de Gaulle Renault Les meilleurs voitures! Skype moi! Bagnolet Peugeot Skype moi! BelleVille Audi Skype moi! Voitures Accueil Titre Voitures Paris 2172 annonces Publier v Rechercher Mon Kijiji 10-sept.-05 clio 2 POLO PACK ABS DIESEL 1998 1800€ Aide Publier une annonce dans cette catégorie 1.800,00 EUR 11-sept.-05 1 EME MAIN CARNET D ENTRETIE N REMPLI 165000KMS PROBLEME BOITE COTE ARGUS 3000€ APPELER 0615600964 Prix Honda CRX à saisir! vite! vite ! vite ! 3.000,00 EUR 11-sept.-05 A vendre Honda CRX 1.6 16v / Couleur : Blanche / Année : 92/ Intérieur : Noir (état : propre) / Kms : 157000/ C.T.: Ok (vierge) / Caisse rabaissée / Jantes aluminium 17 pouces / Pot "Remus". Prix... Date veuillez me contacter 10-sept.-05 vends cause deces clio 2 ,1.4 rte vert met., 5 portes, essence, 23000kms.annee 1998,1 ere main ct ok. avec peu de kil.toujours tres bien entretenue.URGENT tel 0615910629 205 3p DIE 126000 KM, freins courroie neuf (factures) 3000 3.000,00 EUR € eb Y PayPal skype blanche, 3 portes, bon état général, courroie + tout le système de freinage refait (factures), alarme, centralisation, poste cd alpine, 126000 km 3000 €, année 1995, voiture entretenue mécaniquement ... 306 diesel 3.500,00 EUR 10-sept.-05 annee 1996 bon etat loire atlantique tel 0625782100 heure repas A SAISIRRRRRRRRRRRRRR 10-sept.-05 750,00 EUR 10-sept.-05 VEND ANXTIA 1L8 ESSENCE 94 DANS LETAT A ENLEVER DANS LE 78 TEL 06 64 71 26 07 JUSQUA 23H LE WE C 250TD 150 CH 6.600,00 EUR 10-sept.-05 Shopping.com™ Rent.com an eb Ycompany > MARKTPLAATS.NL Internet zoals het bedoeld is mobile.de 34#35Expanding the global footprint Emerging markets ● India Poland Brazil China Russia Large grey markets Limited trust on Internet Culture of haggling • Culture of IM/mobile • Price sensitivity eby PayPal skype Japan ● New markets ● * Nordic Limited eBay presence Large growth in Skype users Cross-border trade ● Limited trust Buyers need more interaction and information from sellers 35#36Skype on eBay China 首页|网站地图 | 诚信与安全 | 注册 买东西卖东西 我的易趣 社区 您好!请登录 或 注册。 eb³Y 趣 首页 > 买东西 > 随身视听/音响/家电 > MP3随身听 > 三R/Samsung 在易趣搜索: 在物品名称 描述中同时搜索 共门关键字:mp3, ypx mp4, 按物品所在地搜索 |显示 中国 搜索选项 只显示: 接受安付通付款的物品 □|竞标物品 □ 物品状况 全新 V 物品价格范围 至 显示搜索结果 自定义上述搜索条件 门到易趣店铺购物 乔智数码 (246) 星星小店 (107) 天新电子数码 (53) 多创数码体验馆★M... (46) 逛逛同类店铺 yp - c1 在三星/Samsung中找到 1023 件物品 列表显示橱窗展示 推荐收物品 冰点价格 2 ADD eb Y PayPal skype 物品名称 帮助 三星/Samsung 搜索 高级搜索 蔚晨贝尔品质保证精工之作*仿三星F1(256 M)精巧项链造型OLED彩屏+内置锂电+FM调频+电子 380.00元 F 一口价 书▲付 Skype Me 排序方式: 按登录时间排序:即将结束物品优先 价格 出价 地区 韩国的品牌MPGIO/mp3/MP4电影播放器 M10/256MB/电 420.00元 54 子图书/歌词显示/收音/录音、一元起拍付 890.00元 一口价 Send Voicemail 上海经典数码 三星T7 OEM版超大屏幕 512M •六万五千色彩LCD+播放电影 电子相册 内置锂电 Skype Me 特推全新★三星YP-520精品U盘 录音 七彩背光 MP3数 码随身听★先看说明再出价 一元起拍 出价就归您 Skype Me 500.00元 560.00元 一口价 开始新的搜索 1.00 新增到关注的分类 在此分类出售 上海 广东-深圳市 上海 搜索 高级搜索 河北 自定义显示 到余时间 _ 37分钟 37分钟 12小时 35分钟 13小时 22分钟 36#37Agenda What is Skype? Expanding eBay's share of e-commerce A great standalone business Financials eb Y PayPal skype 37#38A great standalone business 1 A large and growing opportunity 2 A strong leadership position 3) Competitive advantage eb Y PayPal skype 38#39An important consumer activity Minutes per user per month(1) 500 450 400 350 300 250 200 150 100 50 0 16 Search 44% of all user time online is eb Y PayPal skype spent communicating (2) 127 eBay marketplace 80 Web Email 195 IM 45 Phone Calls from home (³) Share of VOIP calls expected to increase significantly over time Skype today Communications Source: (1) Nielsen Netratings averages for biggest sites in each category, (2) eBay estimates from Comscore data, (3) Yankee Group as of April 2003 39#40Increasing penetration Global Broadband subscribers (M) 350 1 300 250 200 150 100- 50- 0 145.7 T 185.4 223.1 256.9 287.8 317.3 2004 2005 2006 2007 2008 2009 eb Y PayPal skype '04-'09 CAGR 21.6% 13.8% 18.1% 18.8% United States Europe Asia/Pacific ROW Source: IDC 40#41Increasing penetration Global Broadband subscribers (M) 350 1 300 250 200 150 100- 50- 0 145.7 T 185.4 223.1 256.9 287.8 317.3 2004 2005 2006 2007 2008 2009 eb Y PayPal skype '04-'09 CAGR 21.6% 13.8% 18.1% 18.8% United States Europe Asia/Pacific ROW US Broadband and VOIP households (M) 30M VOIP households in US by 2009 80 70- 60 50 40- 30 20 10 0 24.6 32.6 41.1 8% 50.1 13% 58.5 20% 66.9 29% 72.3 Total BB 38% 1% 3% 2003 2004 2005 2006 2007 2008 2009 VoIP subscribers Broadband households % VoIP Source: IDC 41#42Increasing usage 10 2001 17 2002 VOIP Annual Minutes of Use (B) 27 2003 eb Y PayPal skype 42 2004 72 183 2005E 2006E 367 760 2007E 2008E 1,495 2009E Source: IDC 42#43A leadership position Skype's global revenue base % of total EU 48% Other 12% ΝΑ 13% Asia 27% eb Y PayPal skype Source: Skype, Sandvine 43#44A leadership position Skype's global revenue base % of total EU 48% Other 12% ΝΑ 13% Asia 27% eby PayPal skype Skype segment share in North America VOIP Minutes Estimated -25% of Skype users are businesses VOIP Users 0 46.2% 35.8% 20 40 60 Percent of total (%) Skype is #1 Skype is #1 Source: Skype, Sandvine 44#45Strong team • Founders created Kazaa, were executives at Tele2 Entrepreneurial senior management team from Tele2, Microsoft, Yahoo!, OpenWave Developers pioneered peer- to-peer technology eb Y PayPal skype Niklas Zennström CEO & Co-Founder Janus Friis Co-Founder 45#46Focus matters ebay PayPal eby PayPal skype Commerce Payments 4556#47Focus matters ebay PayPal Google YAHOO! eby PayPal skype Commerce Payments Search Content 47#48Focus matters ebay PayPal skype Google YAHOO! eby PayPal skype Commerce Payments Communications Search Content 48#49Advanced technology Virtual, peer-to-peer architecture brings key advantages ● ● System is massively scalable No single point of failure Low CapEx In addition, Skype has ● Better firewall tunneling that allows more calls to be completed Advanced security and encryption technology eb Y PayPal skype 49#50Many great applications Internet Explorer Toolbar - Beta Page Contacts My Contacts - Local results for pizza near Bakersfield, CA 93304 Little Caesars Pizza - 0.5 miles S-2515 S H St-(800) 722-3727 Pizza Hut: Bakersfield - 1.0 miles SW-3017 Wilson Rc skype Domino's Pizza - 1.6 miles S - 2501 White LN- (661) Pizza Coupons and Locations for Bakersfield, CA Domino's Pizza 2306 Brundage Lane, Bakersfield, CA 93304 6 Pizza 2501 White Ln Ste B, Bakersfield, CA 93304661-831- couponing.about.com/od/ restaurantcoupons/qt/bakrsfild.htm - 20 Beta Jyve Bakersfield Pizza (Bakersfield, CA) 2322 Brundage Ln, 2501 White Ln #B, Bakersfield, CA 93304 Category: Pizza ... Fat Duck Pizza - More Info / Map 2125 Brundage Ln. Bakersfield, CA 93304 ... You are here: Home >> All lyve Members User List Web Presence Integration << Previous Local Time 10:26 PM pizza: 93304 Local Time 01:25 AM Jyveld :Lylie2dream Male,21,Rather not say Name : Duran Location: South Africa, Language English Jyveld: spikers Male,25,Single Call +18007223727 Add to Contacts 12211020210 11 12 13 14 15 Interest : Meeting People For: Friends Name :Jason Location USA, California Language English Skype HM Me Send Voicematemal www.Bookmark eby PayPal skype Discussion Socializing Interest: Meeting People Friends Discussion Business & Collaboration Skype Me Me Send Voicematemal www Bookmark LOGIN Next 22 Socializing Dating Women Relationship Women Activity Partners Inbox - Microsoft Outlook File Edit New S Mail Favorite Folde ▾ Inbox Unread For Foll Sent Ited All Mail Folders 3 Integration with Outlook - Beta View Go Tools Actions Help XReply To: Boulas, Chipper Drafts Inbox Junk E-mail Outbox Mailbox - Peile, Laura Deleted Items To: Boulas, Chipper To: Sullivan, Jay To: Martin-Gill, William To: Salvatierra, Melanie Message Body: Sent Items Search Folders Reply to All Forward Send/Receiveo Find Type a contact to find CA Interactive voice response ▸ ▸ ▸ kate Call +1(408) 123 1234 Call +1(650) 123 1234 Newest on top 2:02 PM Voice Marketplace Language learning tools Discussion Peile, Laura To: Boulas, Chipper;: Cc: Pele, Laura Hey everybody. Please advise as to Thanks, Laura Laura Peile New Ventures Str Homework tutoring 50#51Many great applications Internet Explorer Toolbar - Beta Page Contacts My Contacts Local results for pizza near Bakersfield, CA 93304 Little Caesars Pizza - 0.5 miles S-2515 S H St-(800) 722-3727 Pizza Hut: Bakersfield - 1.0 miles SW-3017 Wilson Rc skype Domino's Pizza - 1.6 miles S - 2501 White LN- (661) Pizza Coupons and Locations for Bakersfield, CA Domino's Pizza 2306 Brundage Lane, Bakersfield, CA 93304 6 Pizza 2501 White Ln Ste B, Bakersfield, CA 93304661-831- couponing.about.com/od/ restaurantcoupons/qt/bakrsfild.htm - 2 Beta Jyve Bakersfield Pizza (Bakersfield, CA) 2322 Brundage Ln, 2501 White Ln #B, Bakersfield, CA 93304 Category: Pizza ... Fat Duck Pizza - More Info / Map 2125 Brundage Ln. Bakersfield, CA 93304... You are here: 30A Jyve Members << Previous pizza: 93304 Web Presence Integration Local Time 10:25 PM Local time 01:25 AM Jyveld Lydream Male,21,Rather not say Nome Duran Location South Africa, Language English Call +18007223727 Male,25,Single Nime Jason Location USA, California Language English Add to Contacts eby PayPal skype Meeting People For Friends ( hypn 100 ) Bitte and Voicest femal) ( Bookmark Discussion Socializing Interest: Mosting People For Friends Discussion Med Voicemed) (veral) (à vue Bookmark LOGIN baut. 2 Collaboration Socializing Dating Women Relationship Women Activity Partners Inbox Microsoft Outlook Ele Edt View Go Tools Actions New Mail Favorite Folder Inbox Unread For Foll Sent Ite Integration with Outlook - Beta All Mall Folders a XReplyReply to All ForwardSendiReceiveo Find Type a contact to find -VA To: Boulas, Chipper Inbox Junk E-mail Outbox To: Boulas, Chipper To: Sullivan, Jay To: Martin-Gill, Willam > To: Salvatierra, Melanie Message Body: Mailbox-Peile, Laura Deleted Items Drafts Sent Items 12 Search Folders Interactive voice response ▸ late Call+1(408) 123 1234 Call +1(650) 123 1234 Newest on top Voice Marketplace Language learning tools Discussion Peile, Laura To: Boulas, Chipper; Cc: Peile, Laura Hey everybody, Please advise as t Thanks, Laura Laura Peile: New Ventures Str Homework tutoring 51#52Many great applications skype Local results for pizza near Bakersfield, CA 93304 My Contacts Page Contacts pizza: 93304 Little Caesars Pizza - 0.5 miles S-2515 S H St-(800) 722-3727 Pizza Hut: Bakersfield - 1.0 miles SW - 3017 Wilson Rc skype Domino's Pizza - 1.6 miles S - 2501 White LN - (661) Pizza Coupons and Locations for Bakersfield, CA Domino's Pizza 2306 Brundage Lane, Bakersfield, CA 93304 Pizza 2501 White Ln Ste B, Bakersfield, CA 93304661-831- couponing.about.com/od/ restaurantcoupons/qt/bakrsfild.htm - 2 eb Y PayPal skype Call +18007223727 Add to Contacts Bakersfield Pizza (Bakersfield, CA) 2322 Brundage Ln, 2501 White Ln #B, Bakersfield, CA 93304 Category: Pizza ... Fat Duck Pizza - More Info / Map 2125 Brundage Ln, Bakersfield, CA 93304 ... 52#53Many great applications Internet Explorer Toolbar - Beta My Contacts - Page Contacts Local results for pizza near Bakersfield, CA 93304 Little Caesars Pizza -0.5 miles S-2515 S H St-(800) 722-3727 Pizza Hut Bakersfield - 1.0 miles SW-3017 Wilson Rc skype Domino's Pizza - 1.6 miles S-2501 White LN - (661) Beta Pizza Coupons and Locations for Bakersfield, CA Domino's Pizza 2306 Brundage Lane, Bakersfield, CA 93304 6 Pizza 2501 White Ln Ste B. Bakersfield, CA 93304 661-831- couponing.about.com/od/restaurantcoupons/qt/bakrsfild.htm-20 Bakersfield Pizza (Bakersfield, CA) 2322 Brundage Ln, 2501 White Ln #B, Bakersfield, CA 93304 Category: Pizza ... Fat Duck Pizza - More Info / Map 2125 Brundage Ln. Bakersfield, CA 93304... Jyve You are here: A ve Members << Previous Web Presence Integration Local Time Local Time 01:05 AM Jyveld Lylezdem Male 21,Rather not say pizza: 93304 Nome Duran Location South Africa, Language English Jyveld spikers Male,25,Single Call +18007223727 Location USA, Californi Language English eby PayPal skype Add to Contacts (Skype HM Med Voiceerial Bookmark Interest: Meeting People For Friends Discussion Sucializing Meating People LOGIN Friends Discussion Business & Collaboration Socializing Dating Women Relationship Women Activity Partners Inbox - Microsoft Outlook File Edit New S Mail Favorite Folder ▾ Integration with Outlook - Beta View Go Tools Actions Help XReply To: Boulas, Chipper Inbox Unread For Foll Sent Ited All Mail Folders Drafts Inbox Junk E-mail Outbox Mailbox - Peile, Laura Deleted Items To: Boulas, Chipper To: Sullivan, Jay To: Martin-Gill, William To: Salvatierra, Melanie Message Body: Sent Items Search Folders Reply to All Forward Send/Receivep FindType a contact to find CA Interactive voice response ▸ ▸ ▸ late Call +1(408) 123 1234 Call +1(650) 123 1234 Newest on top 2:02 PM Voice Marketplace Language learning tools Discussion Peile, Laura To: Boulas, Chipper; Cc: Peile, Laura Hey everybody. Please advise as to Thanks, Laura Laura Peile New Ventures Str Homework tutoring 53#54Many great applications ** Inbox - Microsoft Outlook File Edit View Go Tools Actions Help X Reply Reply to All A New Mail Favorite Folder Inbox Unread For Foll Sent Iter All Mail Folders To: Boulas, Chipper To: Boulas, Chipper To: Sullivan, Jay To: Martin-Gill, William To: Salvatierra, Melanie ▸ Message Body: Mailbox - Peile, Laura Deleted Items Drafts Inbox Junk E-mail Outbox Sent Items Search Folders eby PayPal skype late Forward Send/Receive Call +1(408) 123 1234 Call +1(650) 123 1234 Find Newest on top 2:02 PM Type a contact to find Discussion Peile, Laura To: Boulas, Chipper; ! Cc: Peile, Laura Hey everybody, Please advise as to Thanks, Laura Laura Peile New Ventures Str 54#55Many great applications Internet Explorer Toolbar - Beta Page Contacts My Contacts T Local results for pizza near Bakersfield, CA 93304 Little Caesars Pizza -0.5 miles S-2515 S H St-(800) 722-3727 Pizza Hut Bakersfield - 1.0 miles SW-3017 Wilson Rc skype Domino's Pizza - 1.6 miles S-2501 White LN- (661) Pizza Coupons and Locations for Bakersfield, CA 6 Domino's Pizza 2306 Brundage Lane, Bakersfield, CA 93304 Pizza 2501 White Ln Ste B, Bakersfield, CA 93304661-831- couponing.about.com/od/ restaurantcoupons/qt/bakrsfild.htm-2 Beta Jyve Bakersfield Pizza (Bakersfield, CA) 2322 Brundage Ln, 2501 White Ln #B, Bakersfield, CA 93304 Category: Pizza ... Fat Duck Pizza - More Info / Map 2125 Brundage Ln. Bakersfield, CA 93304 ... You are here: Home >> At Jyve Members User List Web Presence Integration << Previous Local Time 10:26 PM pizza: 93304 Local Time 01:25 AM Jyveld :Lylie2dream Male,21,Rather not say Name : Duran Location: South Africa, Language English Jyveld: spikers Male,25,Single Call +18007223727 Add to Contacts 12211020210 11 12 13 14 15 Interest: Meeting People For: Friends Name : Jason Location :USA, California Language English Skype HM Me Send Voicematemal www Bookmark eb Y PayPal skype Discussion Socializing Interest: Moeting People For Skype Me Me Send Voicematemal www Bookmark LOGIN Next 22 Friends Discussion Business & Collaboration Socializing Dating Women Relationship Women Activity Partners Integration with Outlook - Beta Inbox - Microsoft Outlook Ele Edit View Go Tools Actions Help eXReplyReply to All Forward Send/ReceiveFindType a contact to find S. Mail Favorite Folder To: Boulas, Chipper To: Boulas, Chipper ▸ To: Sullivan, Jay To: Martin-Gill, William To: Salvatierra, Melanie Message Body: Inbox Unread For Foll Sent Itel All Mall Folders. EMailbox-Peile, Laura Deleted Items Drafts Inbox Junk E-mail Outbox Sent Items Search Folders Interactive voice response ate B Call +1(408) 123 1234 Call +1(650) 123 1234 Newest on top Voice Marketplace Language learning tools Discussion Peile, Laura To: Boulas, Chipper; Ce: Peile, Laura Hey everybody, Please advise as tr Thanks, Laura Laura Peile New Ventures Str Homework tutoring 55#56Many great applications Beta Jyve You are here: Home >> All Jyve Members User List << Previous Local Time 10:26 PM Local Time 01:25 AM eb Y PayPal skype Jyveld Lylie2dream Male ,21,Rather not say Name : Duran Location South Africa, Language: English Skype Me 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Interest : Meeting People For Friends JyveId : spiker5 Male ,25,Single IM Me Skype Me Name Jason Location :USA, California Language: English IM Me Send Voicemail Send Voicemail email Interest: Meeting People For : email www Bookmark Discussion Socializing www LOGIN Friends Discussion Business & Collaboration Socializing Dating Women Bookmark Next >> Relationship Women Activity Partners 56#57Many great applications Internet Explorer Toolbar - Beta Page Contacts My Contacts - Local results for pizza near Bakersfield, CA 93304 Little Caesars Pizza -0.5 miles S-2515 S H St-(800) 722-3727 Pizza Hut Bakersfield - 1.0 miles SW-3017 Wilson Rc skype Domino's Pizza - 1.6 miles S-2501 White LN - (661) Pizza Coupons and Locations for Bakersfield, CA Domino's Pizza 2306 Brundage Lane, Bakersfield, CA 93304 Pizza 2501 White Ln Ste B. Bakersfield, CA 93304661-831- couponing.about.com/od/restaurantcoupons/qt/bakrsfild.htm-20 Beta Jyve Bakersfield Pizza (Bakersfield, CA) 2322 Brundage Ln, 2501 White Ln #B, Bakersfield, CA 93304 Category: Pizza ... Fat Duck Pizza - More Info / Map 2125 Brundage Ln. Bakersfield, CA 93304... Tou are here: A ve Members << Previous Web Presence Integration Local Time Local Time 01:25 AM pizza: 93304 Jyveld Lyledream Male,21,Rather not say Name Duran Location South Africa, Language English Jyveld spikers Male,25,Single Call +18007223727 Name Jason Location USA, California Language English Add to Contacts eb Y PayPal' skype Skype Meand Voicemakerial Bookmark Meeting People For Friends Discussion Socializing Masting People LOGIN Friends Discussion Business & Collaboration Socializing Dating Women Relationship Women Activity Partners Inbox Microsoft Outlook Ele Edit View Go Tools Actions Help New XReplyReply to All Forward Send/Receive FindType a contact to find Mail Favorite Foldel Integration with Outlook - Beta Inbox Unread For Foll Sent Ite All Mall Folders To: Boulas, Chipper To: Boulas, Chipper To: Sullivan, Jay To: Martin-Gill, William To: Salvatierra, Melario Message Body: Mailbox-Peile, Laura Deleted Items Drafts Inbox Junk E-mail Outbox Sent Items Search Folders Interactive voice response ▸ ▸ jate B Call +1(408) 123 1234 Call +1(650) 123 1234 Newest on top Voice Marketplace Language learning tools Discussion Peile, Laura To: Boulas, Chipper; Ce: Peile, Laura Hey everybody. Please advise as t Thanks, Laura Laura Peile New Ventures Str Homework tutoring 57#58Many great applications ● Voice Marketplace • Create and share innovative voice services Content providers get a share of call revenue eb Y PayPal skype Valuable content and services Interactive voice response (eg. traffic reports) Language learning tools Key partners Tellme. voxpilot a Eureka Soft company Homework tutoring voxeo 58#59Reinforcing ecosystem OPUUDO FFL % cingular 12:48 AM 200+ Hardware devices labeled as Skype-compatible eb Y PayPal skype 1000+ Developers skype intel. SIEMENS MOTOROLA Logitech 30+ partnerships with world-class companies Inbox - Microsoft Outlook Eile Edit View Go Tools Actions Help Reply Renly to All Fc forum.skype.com :: View topic - PHP and Skype AP A File Edit View Favorites Tools Help Back Address http://forum.skype.com/viewtopic.php?t=29879 skype. My Contacts Page Contacts - 0 New Search Favorites 200+ Skype-enabled Applications 59#60The power of three Users invite other users skype New users invite more users eb Y PayPal skype 60#61The power of three Users invite other users skype New users invite more users eb Y PayPal skype Sellers go where buyers are ebay Buyers go where sellers are More sellers offer PayPal PayPal More buyers use PayPal 61#62The power of three Users invite other users skype New users invite more users eBay Users eBay Usage PayPal Wallet eb Y PayPal skype Sellers go where buyers are ebay Buyers go where sellers are PayPal Wallet Skype Users Skype-Enabled Commerce More sellers offer PayPal PayPal More buyers use PayPal eBay Users Skype Users eBay & Skype Usage 62#63Agenda What is Skype? Expanding eBay's share of e-commerce A great standalone business Financials eb Y PayPal skype 63#64Valuation considerations ● ● Traditional financial valuation methods Precedent transactions Value per user Discounted cash flow Earn out structure based on aggressive goals A great standalone business, not just VOIP functionality Leading market position with considerable momentum ● - - - - - Technology leadership Considerable monetization potential Synergistic opportunities with existing businesses eby PayPal skype - 64#65The power of three: synergistic opportunities skype eBay + Paypal Users • 157M eBay registered users • 79M PayPal accounts • 1% overlap between Skype and eBay US users today(1) eBay Usage • 5M email messages/day 1.4B new listings/year PayPal Wallet Boosts sales of premium services eb Y PayPal skype ● GS (1) Nielsen Netratings 65#66The power of three: synergistic opportunities skype eBay + Paypal Users • 157M eBay registered users • 79M PayPal accounts • 1% overlap between Skype and eBay US users today(1) eBay Usage • 5M email messages/day • 1.4B new listings/year PayPal Wallet ● • Boosts sales of premium services eby PayPal skype ebay Skype Users • 54M registered users •~25% of users are business accounts Skype Commerce (usage) Skype-enabled commerce • 200+ Skype hardware applications G (1) Nielsen Netratings 66#67The power of three: synergistic opportunities skype eBay + Paypal Users 157M eBay registered ● users • 79M PayPal accounts • 1% overlap between Skype and eBay US users today(1) eBay Usage • 5M email messages/day 1.4B new listings/year PayPal Wallet ● • Boosts sales of premium services eb Y PayPal skype ebay Skype Users • 54M registered users .-25% of users are business accounts Skype Commerce (usage) Skype-enabled commerce • 200+ Skype hardware applications PayPal® Skype Users ● >80% outside US Skype Usage • Payment of call services Send money to buddies (1) Nielsen Netratings 67#68Transaction summary Transaction Value and Structure Performance-based earn out Expected Closing eb Y PayPal skype ● Pay $1.3B(1) in cash Deliver $1.3B(1) in eBay stock subject to certain sale restrictions Total of $2.6B (4.8% of market cap) Earn out of up to an additional $1.5B(1,2) based on high active user, gross profit, and revenue goals 2008 - Earn out participants received less up-front consideration All of management opted for the earn out Q4 2005 (1) Based on an exchange rate of € 1.239 (2) Earn-out value presented on an undiscounted basis 68#69Strong Business Model ● ● ● • No inventory or warehouses Efficient customer acquisition ● eby PayPal skype ● Large market opportunity Transaction-based revenues High operating leverage Low capital requirements eb Y PayPal skype Rapid revenue growth Outstanding cash generation (1) Nielsen Netratings 69#70Skype revenues Free services Free Skype to Skype calls (cost nothing to provide) eb Y PayPal skype Premium services Skypeln and SkypeOut Expressive content (avatars, ringtones, ringbacks) me Hardware royalties Voice services 70#71Strong Revenue Growth Existing Lines Of Business (Dollars in millions) $7 $60 $200+ 2004 2005E 2006E eb Y PayPal skype 71#72Strong Revenue Growth Existing Lines Of Business (Dollars in millions) $7 $60 $200+ 2004 2005E 2006E eb Y PayPal skype T $0.4 $5.7 1996 1997 eb Y $47.4 1998 $12.6 $103.8 $259.0 2000 2001 2002 PayPal 72#73Skype revenues Free services Free Skype to Skype calls (cost nothing to provide) eb Y PayPal skype Premium services Skypeln and SkypeOut Expressive content (avatars, ringtones, ringbacks) sky me Hardware royalties Voice services ● ● ● ● New eBay Opportunities $6 Existing eBay Categories Emerging markets New geographies Cross-border trade kijiji New categories New marketplaces (classifieds, shopping.com) 73#74Leveraged cost structure ● ● ● Efficient customer acquisition Word of mouth significantly reduces user acquisition cost High operating leverage - - - Infinitely scalable network infrastructure with low capex Peer to Peer technology requires minimal capex Distributed architecture eliminates single point of failure Centralized server(s) for authentication for basic services - Centralized server(s) for premium services, e.g. voicemail - - Minimal incremental cost for each user call Software business model with low fixed costs - Outstanding cash generation capability eb Y PayPal skype 74#75Financial impact ● ● ● ● Dilutive to Q4-05 pro-forma and GAAP EPS by $0.01 and $0.04, respectively Dilutive to 2006 pro-forma and GAAP EPS(3) by $0.04 and $0.12, respectively Breakeven on a pro-forma basis in Q4 2006 Long term operating margins of 20-25% eb Y PayPal skype (3) Not adjusted for FAS 123 75#76eBay Inc Balance Sheet ● ● Funding acquisition through internally generated cash flows Balance sheet fundamentals remain unchanged: Cash reserves of >$1B - - - - Annualized free cash flows of >$1.5B Low capex requirements: ~$2M in 2006 No long-term debt Long-term revenue and profit growth will continue to add to already strong cash flow position eby PayPal skype 76#77Summary ● A great standalone business with a very complementary business model Significant growth opportunities: Build on Skype momentum Accelerate eBay existing and new businesses Create entirely new businesses - - - • The power of 3 ● eb Y PayPal skype 77#78The power of 3 Users invite other users skype New users invite more users eb Y PayPal skype Sellers go where buyers are eby Buyers go where sellers are More Sellers Offer PayPal PayPal More Buyers use PayPal 78

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