EBay is selling Skype

Credit: Skype
Credit: Skype

Yup, after paying a HUGE amount for the Internet phone company, EBay Inc. is now letting go of their extravagant purchase.

The famous online auction company announced Tuesday that they will be keeping 35% of Skype while 65% will be sold to a group of private investors. This will likely be finalized later this year.

The deal includes $1.9 billion in cash and then $124 million to be paid later. All in all, Skype is valued at just $2.75 billion.

I’m emphasizing the just there because EBay has paid a whopping $3.12 billion for Skype when it bought the Internet phone company four years ago with plans of integrating it in their auction site. This did not materialize though because EBay officials admit that the technologies were in fact, incompatible.

John Donahoe, EBay chief executive, says that selling Skype will allow it to focus on growing the online voice and video communication business.

Mosaic’s co-creator Marc Andreessen was among the investors announced Tuesday. Other investors include the Canada Pension Plan Investment Board and European venture capital firm Index Ventures.

Source: http://www.latimes.com/business/la-fi-skype-ebay2-2009sep02,0,6466229.story