Cow’s Life - Thinking Outside Of The Barn

At first glance, I was really puzzled when eBay’s CEO Meg Whitman made the decision to acquire Skype for a whooping $4.1 billion in mid September. First of all, I can’t seem to be able to connect the dots between an online auction site and an online phone service company. I was hoping Whitman could give a better explanation but even Fortune’s article wasn’t able to decipher the 78 page PowerPoint presentation as why eBay made such an odd move. “Meg’s motive?” Fortune wrote, “”(is to) keep(ing) pace with Google and Yahoo”. Hmm, what does that mean? Even the market isn’t so enthusiastic about the news. eBay’s stock is down 7% since the rumor of the merge broke.

I was flying this weekend. After my flight got severely delayed, I checked into the Admiral Club and met a business man who seemed to be really bored. So we chatted. I learned that he owns a small printing business with his partner. Since I own a side family business as well, we started chatting about how to expand business and compete for more customers. At one point, he said something that got me thinking. I don’t remember his exact words, but here is the summary:

“… We ought to think 10, 15 years ahead. We have to have the visions that people in today’s society may not understand. That’s how we stay ahead of the game…”

Four years ago when Yahoo’s new Hollywood CEO Terry Semel wanted to transition a Directory Search Engine into a Hollywood style media company, we probably all gave him the same reaction, “You are going to do WHAT????!!!” Now, the reality shows his vision is really working. Yahoo is no longer a search directory and online ads saler. If you are interested, check out this article as how Semel turned Yahoo into a Hollywood style new media company. Even IBM has changed so much since I first joined the company in 1996. We are the first to manufacture PCs and now we no longer make them! Instead, our R&Ds are making all kinds of chips and processors for XBOX 360, PS3 and Nintendo Revolution! 10 years ago, none of the IBMers would believe this. I know I’d be shocked. But I think we made a good decision by ditching the money-losing PC hardware division and grabs a share in the hotter digital entertainment industry before Intel does. (Author’s note: Actually we haven’t been a hardware company for years. Our core business has shifted to services and consulting because of Lou Gerstner’s vision after he took over the company in early 90’s).

After all, it’s the vision that makes a company staying successful years after years. It might seem odd today that eBay is merging with a communication company. But as more and more sellers and buyers are demanding better communications on the bidding merchandises, it might make sense to team up e-commerce with communication.

Hey, maybe Jerry Seinfeld deicdes to host a real-time digital video auction to sell his auto collection one day. You never know…