Feeds

Skype founders drop licence threat against eBay

Bluff pays off for European duo

SANS - Survey on application security programs

A legal row that threatened the existence of Skype has been settled, with the free net phone service's founders regaining a significant portion of the firm from eBay.

Niklas Zennström and Janus Friis will get 14 per cent of Skype and seats on its board under the deal, announced today.

In return the pair will make a "significant" cash investment and transfer ownership of the proprietory peer to peer software that powers the service to Skype. The had sued eBay for using the code - owned by Joltid Ltd, their holding company - without a licence.

in July eBay said in a regulatory filing the attack had prompted it to attempt developing replacement software but said it "may result in loss of functionality or customers even if successful".

As well as threatening Skype's continued operation, the case blocked eBay's attempts to spin off the company, which it bought from Zennström and Friis for $2.6bn in 2005.

As a result of today's settlement the online auction house will retain 30 per cent, and private equity firms 56 per cent. Once the sell off is complete, eBay will receive $1.9bn.

"Skype will be well positioned to move forward under new owners with ownership and control over its core technology," said John Donahoe, eBay's CEO.

"At the same time, eBay continues to retain a significant stake in Skype and will benefit from its continued growth. We look forward to closing the deal and focusing on growing our core e-commerce and payments businesses."

eBay has been looking to offload Skype after a $900m writedown in 2007 confirmed it massively overpaid.

Index Ventures, one of the private equity firms that had planned to buy Skype, pulled out as a result of the legal settlement.

"Although Skype has the potential to be a great investment, the deal terms changed for Index such that it no longer matches our investment criteria and thus we have decided not to participate in the transaction," said Index Ventures' Danny Rimer. ®

3 Big data security analytics techniques

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
AT&T dangles gigabit broadband plans over 100 US cities
So soon after a mulled Google Fiber expansion, fancy that
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
Google looks to LTE and Wi-Fi to help it lube YouTube tubes
Bandwidth hogger needs tube embiggenment if it's to succeed
Turnbull gave NBN Co NO RULES to plan blackspot upgrades
NBN Co faces huge future Telstra bills and reduces fibre footprint
NBN Co plans fibre-to-the-basement blitz to beat cherry-pickers
Heading off at the pass operation given same priority as blackspot fixing
NBN Co in 'broadband kit we tested worked' STUNNER
Announcement of VDSL trial is not proof of concept for fibre-to-the-node
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.