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eBay completes Skype sale

Last Updated: Friday, November 20, 2009 - 13:51

Washington: Online auction giant eBay announced it had completed its sale of Skype to an investment group that includes the two founders of the Web communications company.

The previously announced sale of a 70 percent stake in Skype for some two billion dollars had been held up by lawsuits filed by Skype founders Niklas Zennstrom and Janus Friis.

Zennstrom, a Swede, and Friis, a Dane, settled the suits this month and will hold a 14 percent stake in Skype through their new company, Joltid Ltd.
Fifty-six percent will be held by an investor group led by private equity firm Silver Lake Partners, the Canada Pension Plan Investment Board, venture capital firm Andreessen Horowitz and others.

EBay will retain a 30 percent equity investment in Skype.

EBay received 1.9 billion dollars in cash and a note for 125 million dollars for the 70 percent stake in Skype.
The deal values Skype at 2.75 billion dollars.

EBay purchased Skype from Zennstrom and Friis in 2005 for a price tag that eventually exceeded 3.1 billion dollars.

Skype, which has its headquarters in Luxembourg, bypasses the standard telephone network by channeling voice and video calls over the Internet.

Its allows users to call others free of charge and provides the ability to connect with land lines or mobile devices at low rates.

Bureau Report

First Published: Friday, November 20, 2009 - 13:51
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