Skype's the Limit for eBay

eBay (EBAY Quote) may be hurting for a new growth opportunity, but Skype won't kill the pain, say analysts.

Reports that the online auction giant is in talks over a multibillion-dollar deal with Net-calling upstart Skype sent eBay's shares down 3% Thursday as Wall Street gave a thumbs-down on the possible pairing.

"If eBay was considering whether to make this move, it would be a not-so-subtle admission that growth is slowing," says Hoefer & Arnett analyst Marty Pyykkonen, who has a reduce rating on eBay.

After a decade of rapid growth, eBay has stagnated. Now, with a $2 billion pile of cash and short-term investments, the San Jose Net auctioneer seems to be looking for some new direction. ...