65% Share of Skype Transfered out of Ebay

September 1, 2009 --
Ebay, the US online auction group, yesterday agreed to unload 65 percent of its Skype internet calling service to a group of private investors for $2bn in cash and debt.The investor group is led by Silver Lake, Silicon Valley's most prominent technology private equity firm, and includes two venture capital firms.

When bought Skype, Ebay believed that it would grease the wheels of its core online auctions business, making it easier for buyers and sellers to communicate. But the planned integration failed to work. Ebay turned to a possible IPO (Initial Public Offering) of Skype earlier this year after receiving bids of about $2bn for the internet phone division.

Ebay said it would receive $1.9bn in cash and a $125m debt instrument from the buyers, ending its plan for an IPO of Skype.

Niklas Zennstrom and Janus Friis,Skype's founders, will continue to own rights to the technology in the voiceover-internet-protocol service despite the arrangement. And the dispute is due to come to court in the UK next year.
Skype , Silicon Valley , Ebay , internet calling service , voiceover-internet-protocol service