eBay Sells Skype to Private Investors

eBay will sell its Skype communications unit to a group of private investors in a deal valuing the business at $2.75 billion. The buyer, who will control an approximately 65 percent stake, is an investor group led by Silver Lake and includes Index Ventures, Andreessen Horowitz and the Canada Pension Plan (CPP) Investment Board. eBay is expected to receive approximately $1.9 billion in cash upon the completion of the sale and a note from the buyer in the principal amount of $125 million. eBay will retain an approximately 35 percent equity investment in Skype. The transaction, which is not subject to a financing condition, is expected to close in the fourth quarter of 2009.


In April 2009, eBay announced plans to separate Skype from the company, beginning with an IPO in 2010. The decision followed a year‐long review of Skype within eBay's portfolio. As it prepared for an IPO, the company said it would naturally consider bids for Skype that offered an attractive valuation.


In 2008, Skype generated revenues of $551 million, a 44 percent increase compared to 2007. Total eBay Inc. revenues for 2008 were $8.5 billion. Registered Skype users reached 405 million by the end of 2008, a 47 percent increase from 2007. Skype is attracting hundreds of thousands of new users each week.
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