Feeds

eBay close to Skype sale

Hanging up on VoIP

Next gen security for virtualised datacentres

eBay is close to getting shot of Skype - the VoIP phone service it paid $2.6bn for in 2005.

The deal didn't make sense at the time, and eBay has never managed to integrate the technology into its core auction business. Meg Whitman's claim that the combination of the online tat bazaar and PayPal and Skype would "create an unparalleled engine for ecommerce and communications around the world" never really materialised.

Including payouts to the founders, the bill went over $3bn and eBay was forced to write off almost a billion of this valuation.

The VoIP business will be sold to a posse of private equity firms, including Silver Lake Partners and Netscape founder Marc Andreesen's investment business. Index Ventures also gets a mention in the New York Times. The paper reckons the sale could be announced later today.

Any deal will have to wrestle with an ongoing legal dispute between eBay and a company run by Skype's founders called Joltid which provides the Voip firm's encyrption technology. In July eBay told financial regulators it was looking to create technology to replace Joltid's, but that such a process would be expensive and might ultimately fail. ®

The essential guide to IT transformation

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
EE fails to apologise for HUGE T-Mobile outage that hit Brits on Friday
Customer: 'Please change your name to occasionally somewhere'
Time Warner Cable customers SQUEAL as US network goes offline
A rude awakening: North Americans greeted with outage drama
We need less U.S. in our WWW – Euro digital chief Steelie Neelie
EC moves to shift status quo at Internet Governance Forum
BT customers face broadband and landline price hikes
Poor punters won't be affected, telecoms giant claims
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.