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	<title>DWS Business &#187; ebay</title>
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		<title>ebay to sell 65 per cent of Skype to group of private investors</title>
		<link>http://www.dancewithshadows.com/business/ebay-to-sell-65-per-cent-of-skype-to-group-of-private-investors/</link>
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		<pubDate>Wed, 02 Sep 2009 05:15:57 +0000</pubDate>
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		<category><![CDATA[ebay]]></category>

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		<description><![CDATA[eBay, the online-auction website, is selling its majority stake in Skype, the internet-phone company, for about $2 billion (£1.2 billion).  According to reports, eBay will keep 35% stake in Skype. The deal values Skype at $2.75 billion. The deal, say reports, will be finalized by the last three months of 2009. Skype, which eBay had [...]]]></description>
			<content:encoded><![CDATA[<p>eBay, the online-auction website, is selling its majority stake in Skype, the internet-phone company, for about $2 billion (£1.2 billion).  <span id="more-182"></span>According to reports, eBay will keep 35% stake in Skype. The deal values Skype at $2.75 billion.</p>
<p>The deal, say reports, will be finalized by the last three months of 2009.</p>
<p>Skype, which eBay had bought for $2.6 billion in 2005, is to be majority-owned by a group of private investors, including Marc Andreessen, the co-founder of Netscape, Andreessen Horowitz, a new venture-capital company headed by Marc Andreessen, Index Ventures, as well as the Canada Pension Plan Investment Board and private equity firm Silver Lake.</p>
<p>The new investors are to pay $1.9 billion in cash. A note for $125-million will be given to eBay, promising to pay the amount on demand or at an agreed time.</p>
<p>Earlier in 2009, eBay had said that it was planning to spin off Skype and list its shares in the first half of 2010 – which indicated that Skype was for sale.</p>
<p>eBay had paid over $3 billion for Skype, including payouts to Janus Friis and Niklas Zennstrom, who founded Skype in 2003.</p>
<p>A year after it was bought, ebay wrote down the value of Skype to $1.2 billion.</p>
<p>The software of Skype allows users of computers and mobile phones to talk to each other free of charge as well as make cut-price calls to landlines and mobiles.</p>
<p>While traditional mobile calls are transmitted over a cellular network, Skype turns voice into data and then sends it over the internet.</p>
<p>Since eBay bought Skype, the number of registered Skype users went up to 405 million from 53 million.</p>
<p>According to some reports, eBay had negotiated with Google over buying Skype, but Google opted to abandon a deal fearing that prolonged litigation could lead to paying huge amounts in damages.</p>

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