eBay prepares to spin off Skype
Published: 15 Apr 2009 16:08 BST
eBay announced plans on Tuesday to spin off its internet phone and videoconferencing service, Skype, with an IPO in the first half of 2010.
The decision comes four years after eBay acquired Skype for $2.6bn (£1.74bn). The online auction giant planned to offer customers the ability to discuss their transactions in real-time, but the acquisition failed to provide the synergy eBay sought.
"Skype is a great standalone business, with strong fundamentals and accelerating momentum. But it's clear that Skype has limited synergies with eBay and PayPal. We believe operating Skype as a standalone publicly traded company is the best path for maximising its potential," John Donahoe, eBay's chief executive, said in a statement.
Although eBay plans to launch a Skype IPO in the first half of 2010, the exact timing will be based on market conditions, the company said.
In 2008, Skype generated $551m in revenue, up 44 percent over the previous year. The number of Skype's registered users increased to 405 million at the end of 2008, up 47 percent from the previous year.
eBay has been weighing its options regarding Skype's fate for some time. When eBay announced Donahoe as its new chief executive in spring 2008, the online auction giant indicated it would then take a year to evaluate the future of its online phone and videoconferencing service.
Reports surfaced earlier in April that Skype's founders were interested in repurchasing the company, with the aid of private-equity firms KKR, Warburg Pincus, Elevation Partners and Providence.
Credit: eBay to launch a Skype IPO in 2010 from CNET News
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