Share
Four years after paying big bucks for the purchase of Internet telephony service Skype, online auction heavyweight eBay has announced it has written the platform down to $1.7 billion USD and plans to hold a public stock offering in 2010 to spin the company off.
Are Friis and Zennstrom set to reaquire Skype? Image: Skype/eBay.
In confirming its willingness to hand over control of Skype, which has more than 400 million users worldwide, eBay has thereby conceded defeat regarding ambitious plans to boost business by incorporating Skype’s VoIP technology into the auction house’s buying and selling process.
The Times Online reports that the upcoming availability of Skype may see original founders Janus Friis and Niklas Zennstrom looking to reacquire the business they sold to eBay in 2005 for $2.6 billion USD.
Prior to eBay’s announcement, The New York Times reported that Friis and Zennstrom were in talks with a number of private equity groups with a view to taking back Skype, which lodged a 44 percent year-on-year revenue increase in 2008 after pulling in $551 million USD.
“Skype is a great stand-alone business with strong fundamentals and accelerating momentum,” commented John Donahoe, CEO of eBay, in an official statement. “But it is clear that Skype has limited synergies with eBay. We believe operating Skype as a stand-alone publicly traded company is the best path for maximising its potential.”
Initial investor reaction to eBay’s announcement saw shares pushed up by $0.56 USD on Wall Street, which equates to an increase of 3.9 percent.
Want regular updates from The Tech Herald? Follow us on Twitter.
The Tech Herald: iPod Touch looking rosy as Skype is confirmed for iPhone
The Tech Herald: Skype to offer unlimited international calls
The Tech Herald: Skype on iPhone could create breach of contract
Interested in a more interactive TTH? Join our Facebook Group Want regular updates from The Tech Herald? Follow us on Twitter
Advertising
Comment on this Story