EBay Sells Most of Skype to Private Investors

With its sale to private investors, the online calling service Skype has thrown off the last of the shackles that limited its growth and potential as a unit of eBay. Now its challenge is to turn its global popularity into bigger profits.EBay announced on Tuesday that it was selling Skype to a group led by the Silicon Valley private equity firm Silver Lake Partners. As part of the deal, which values Skype at $2.75 billion, the buyers agreed to pay $1.9 billion in cash, which includes a loan from eBay of $125 million, for 65 percent of the company. EBay, which is based in San Jose, Calif., will retain a 35 percent stake.To read this report in The New York Times in full, see:
www.nytimes.com/2009/09/02/technology/companies/02ebay.htmlAlso see:In a Sale, Skype Wins a Chance to Prosper
With its sale to private investors, the online calling service Skype has thrown off the last of the shackles that limited its growth and potential as a unit of eBay. Now its challenge is to turn its global popularity into bigger profits.EBay announced on Tuesday that it was selling Skype to a group led by Silver Lake Partners, a private equity firm in Silicon Valley. As part of the deal, which values Skype at $2.75 billion, the buyers agreed to pay $1.9 billion in cash, which includes a loan from eBay of $125 million, for 65 percent of the company. EBay, which is based in San Jose, Calif., will retain a 35 percent stake.
http://www.nytimes.com/2009/09/02/technology/companies/02ebay.htmlEbay calls time on Skype venture
Ebay on Tuesday agreed to unload a 65 per cent stake in its Skype internet calling service, bringing down the curtain on a deal that had come to be seen as the internet auction company’s biggest strategic mistake.The sale to a group of private investors, in return for $1.9bn in cash and a $125m debt instrument, marks the reversal of an ambitious 2005 push into online communications that came to cloud the final years at the company of Meg Whitman, its former chief executive.
http://www.ft.com/cms/s/0/4a3ef33c-9702-11de-83c5-00144feabdc0.htmlEBay Sells Skype to Investor Group
EBay Inc. said it will sell a 65% stake in its Skype Internet-phone business to private investors, in a deal that marks the end of an unhappy marriage in the technology arena.An investment group led by private-equity firm Silver Lake Partners and including venture-capital firms Index Ventures and Andreessen Horowitz, as well as the Canada Pension Plan Investment Board, agreed to pay $1.9 billion in cash, plus a $125 million note, for the Skype holding.
http://online.wsj.com/article/SB125179267665375495.htmleBay sells 65% of Skype for $1.9bn to private equity group
Online auction house eBay sold a 65% stake in Skype to an investment consortium in a deal that valued the internet telephony group at $2.75bn (£1.9bn).The American dotcom group will receive $1.9bn in cash and a further $125m loan. The valuation placed on Skype is roughly comparable to what eBay spent buying the business in 2005.
http://www.guardian.co.uk/business/2009/sep/01/ebay-sells-skype-private-equityeBay reaches deal to sell Skype
Online auction site eBay has agreed to sell the majority of internet phone company Skype for about $2bn (£1.2bn).Skype is to be majority-owned by a group of private investors, including Netscape co-founder Marc Andreessen and private equity firms.EBay will keep a 35% stake in the firm, which it has been trying to sell for some time. It has said that Skype had “limited synergies” with it.
http://news.bbc.co.uk/2/hi/technology/8231072.stmEBay to Sell 65 Percent Of Skype for $1.9 Billion
Auction giant eBay announced Tuesday that it is selling the majority of its stake in Internet phone service Skype to private investors, unwinding a troubled acquisition that never meshed well with the online retailer’s operations.Under the deal, a group of investment funds led by high-tech private-equity firm Silver Lake Partners agreed to pay eBay $1.9 billion in cash and lend $125 million for 65 percent of Skype, a popular service that allows free or low-priced calls internationally over an Internet connection. Other investors include Index Ventures, venture-capital firm Andreessen Horowitz launched by Netscape founder Marc Andreessen, and the Canada Pension Plan Investment Board. EBay said in a release that the deal values Skype at $2.75 billion and that it will keep the remaining 35 percent stake in Skype.
http://www.washingtonpost.com/wp-dyn/content/article/2009/09/01/AR2009090101333.html

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