Internet auction giant eBay has declared its intention to reshuffle the top management at its auxiliary entity Skype. This move was seen to be largely needed because although Skype is a leading Voice over Internet Protocol (VoIP) service provider, it has been unable to generate sustainable revenues.

On the other hand, Skype co-founders Janus Friis and Niklas Zennstrom have expressed their happiness to bow out of the company. EBay has also agreed to complete all outstanding settlement towards its Skype takeover and pay € 375 million out of a total agreed amount €1.2 billion.

In fact, Niklas Zennstrom has stepped down from the post of Skype CEO only to be its non-executive chairman. Zennstrom is being replaced by eBay’s chief strategy officer Michael van Swaaij, till a permanent CEO is appointed for the company. Meanwhile, Skype president Henry Gomez will go back to eBay as the senior vice-president for corporate affairs.

The shakeup in the top management, announced on Monday, has been effected one-and-a-half-month after Skype's global network shut down owing to what the company described as a major restart of users' computers as they re-booted following an upgradation of their Windows programs in a short span.

Many are of the opinion that the reshuffle proves eBay’s illogical enthusiasm and Skype’s stressed Web telephony model. When eBay bought Skype for $2.6 billion two years ago, many could not comprehend why the online auction major was investing so much in a losing Internet phone service. With this shake-up eBay has acknowledged that it might have been hasty in its Skype acquisition.

In fact, majority are of the view that a drastic tactical modification may be required to turn the company that has been generating less than $100 million in sales a quarter into a money spinning venture eBay desperately wants it to be.

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