Feeds

Skype's the limit for eBay: Voip biz sold to private investors

Hangs on to 35 per cent of biz, ditches IPO

Top three mobile application threats

It’s official - eBay has offloaded a majority stake in Skype to a gaggle of investors in a deal that values the VoIP outfit at $2.75bn.

eBay keeps a 35 per cent stake in Skype. The online auction giant will get $1.9bn in cash.

eBay offered to buy Skype for $2.6bn in 2005. But when earnouts were included eBay actually paid over $3bn for the VoIP outfit.

It later wrote down the company’s value by $900m.

The new owners include Silver Lake Partners, Index Ventures and Andreessen Horowitz - the venture capital firm co-founded by Netscape founder and eBay board member Marc Andreessen. The deal is also backed by the Canadian Pension Plan Investment Board.

They will command a 65 per cent interest in Skype.

eBay was at pains to point out today that it wasn’t crying into its beer with the majority sell-off of its stake in Skype.

“There is no doubt in my mind that the talented players that make up this investment group will enable strong growth of Skype in the years to come,” said eBay boss John Donahoe.

Skype's president Josh Silverman is staying on at the firm.

eBay said Skype pulled in $551m sales in 2008, up 44 per cent compared to 2007. At the end of last year the VoIP outfit claimed 405 million users of its service worldwide. Of course users of, mostly, free web services are not always the most loyal punters and Skype now has lots of competing VoIP firms.

eBay said it expects Skype to be making $1bn in revenues by 2011.

The deal is expected to close in the fourth quarter. ®

Securing Web Applications Made Simple and Scalable

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Microsoft unsheathes cheap Android-killer: Behold, the Lumia 530
Say it with us: I'm King of the Landfill-ill-ill-ill
All those new '5G standards'? Here's the science they rely on
Radio professor tells us how wireless will get faster in the real world
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.