Print 13 comment(s) - last by diego10arg.. on Sep 3 at 10:00 AM

EBay plans to offload Skype, as the company has been unable to cash in on the popular VoIP service

EBay yesterday confirmed it has sold most of Skype to a group of investors for $1.9 billion. The investors now own 65 percent of the company best known for its VoIP service, with the following financial breakdown:  $1.9 billion cash, 35% equity investment and $125 million bond -- ends up being just a bit less than the $3.1 billion eBay paid four years ago.

"Selling Skype now at this great valuation, while retaining an equity stake, makes sense for the company," said eBay CEO John Donahoe, said in a press statement.  "And it allows us to focus all of our energies on the opportunities in front of PayPal and eBay."

EBay will be able to use the money made from the deal for  future acquisitions to strengthen its core auction business.  After successfully beating out Google and Yahoo for the right to purchase Skype, eBay has been unable to integrate its VoIP services into eBay.

There were several rumors the past couple of weeks that an investor group would purchase Skype, but the deal wasn't confirmed until today.  Venture capital firm Andreessen Horowitz, private equity firm Silver Lake Partners, venture capital firm Index Venture and Canada pension Plan Investment Board are several of the investors involved in the purchase.

Analysts are unsure if Skype will be able to grow as an independent company, but the investor groups will likely keep a tight control of the company.

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RE: Wrong Business Plan
By invidious on 9/2/2009 9:59:04 AM , Rating: 2
Don't be so quick to write off habit, if someone is used to Skype and it satisfies their needs they are not going to go out looking for a replacement.

Whoever has the marketshare tends to keep it unless something major happens. This is especially true on the internet. The only thing that I predict is going to tip the scales for Skype one way or the other is an explosion of popularity of VOIP in general. Then in the power vacuum one service is going to come out on top and then the masses will flock to it.

RE: Wrong Business Plan
By bissimo on 9/2/2009 10:08:58 AM , Rating: 2
It a lot has a lot to do with the fact that not only do you have to change, but the people to talk with have to change. For example, my wife keeps in contact with her family overseas using Skype. We could never in a million years get her parents, grandmother, cousins, etc. to switch to another service.
I bet they'll start throwing a lot more ads into the free (PC to PC) service. The pay telephone service (PC to phone and vice-versa) will never pay the bills.

"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference

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