Wednesday, April 15, 2009

eBay Ready To Sell Skype

. Wednesday, April 15, 2009

By stockOzone team

Auction website eBay has announced plans to sell off the internet phone company Skype next year.

It brings to an end a troubled relationship between the two companies after eBay struggled to integrate Skype into its core business.

"Skype is a great stand-alone business with strong fundamentals and accelerating momentum," eBay president John Donahoe said.

"But it's clear that Skype has limited synergies with eBay and PayPal. We believe operating Skype as a stand-alone publicly traded company is the best path for maximising its potential."

EBay paid £1.75bn for Skype in 2005 and since then the number of Skype users has boomed from 53 million to 405 million people.

It generated revenue of £370.8m last year, up 44% from the year before. By 2011 it expects to generate £673.4m in revenue.

eBay now expects to float the company in the first half of 2010, depending on market conditions.

The New York Times reported last week that founders Niklas Zennstrom and Janus Friis are interested in buying the company back.

Skype gained attention because it bypasses the standard telephone network by channelling voice and video calls over the web.

Its services include being able to call other users free of charge and the connecting with land lines or mobile devices at low rates.

eBay's share price gained 3.76% in after-hours trading in New York following the announcement of the move.

Disclosure: Author does not own any of the stocks discussed here.





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1 comments:

ebay selling tips said...

This was the bestt thing that happen to skype, ebay have lost the plot.

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