eBay Sells 65% Stake in Skype to Investor Group for $1.9B

Authored by Mark Hefflinger on September 1, 2009 - 7:12am.

Menlo Park, Calif. - Online auction giant eBay (NASD: EBAY) announced on Tuesday that it has agreed to sell a majority 65% stake in its Skype Internet telephone unit to an investor group led by Silver Lake for about $1.9 billion in cash. Other members of the investor group include Index Ventures, Andreessen Horowitz and Canada Pension Plan Investment Board. The deal values Skype at $2.75 billion.

"This is a group of investors and industry veterans that have a strong track record of taking the technology companies they own to the next level. With their know-how helping to guide our vision, Skype is poised to enter the next phase of its growth and development," said Skype CEO Josh Silverman.

eBay, which acquired Skype back in 2005 in a deal worth over $3 billion, will retain a 35% stake in the company after the transaction.

Skype generated revenues of $551 million in 2008, a 44% increase over 2007, and counted 405 million registered users by the end of 2008.

http://www.nytimes.com/2009/09/02/technology/companies/02ebay.html

http://www.ebay.com

http://www.skype.com