$2.5B for Skype? Here's why

An article I recently read, originally published published in an online newsletter called Broadband Directions, reinforces the notion that content is no longer necessarily king, but rather serves to construct relationships:

In short, viewers are more empowered than ever, which makes the job of satisfying and exceeding their needs a steeper hill to climb. Cementing profitable customer relationships means conveying a relevant, valuable brand promise and then delivering on it repeatedly, often by using new technology platforms as the delivery mechanism.

—from Broadband Directions, "It's the Relationship, Stupid", November 2005

A lot of people called eBay's acquisition price for Skype into question, chiefly based on the mathematics of the deal (typically breaking down the purchase price into price/user acquired, and then asking whether each Skype user is truly worth that amount). But far beyond this dollar amount is the question of how much a community of users is worth.

It may well be that the Web 2.0, as it's now being called, might be more about building communities and relationships than building brands.

But that's just me.

Nic