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eBay to Free Skype in 2010 IPO



Well, stop the presses, folks! Skype may have failed in its efforts to buy itself away from eBay, but that doesn’t mean the online auction site is going to be holding onto the telephony service in the long term. Today, eBay announces that they will spin Skype off with an IPO next year. Scheduled for the first half of the year, the exact timing will depend on market conditions.

Back in 2005, eBay bought Skype for $1.3B in cash and $1.3B in stock. The deal could actually pay out even more (for a maximum total of $4B), provided the telephony service met certain goals by 2008.

However, by Q307, eBay took a $1.4B impairment charge on Skype. Rumors have long circulated that eBay would sell the site, which never seemed to align with its strategy in the first place.

In a statement, eBay CEO Jeff Donahoe noted:

Skype is a great stand-alone 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 stand-alone publicly traded company is the best path for maximizing its potential. This will give Skype the focus and resources required to continue its growth and effectively compete in online voice and video communications.

Again with these “synergies.” Meaningless buzz words FTW!

So now that eBay’s getting back down to its fighting weight, where will the online auction giant go next?

  • Roger

    Nice info post but kinda lost the serious news vibe with the picking out/on buzzwords and then using ‘FTW’ ;)

  • http://www.marketingpilgrim.com Jordan McCollum

    Welcome to Marketing Pilgrim. If you’re looking for a serious news vibe, stick to CNN. We’re a blog; our visitors don’t just come for the cold hard facts—they’re here for the opinions (and the snark).

  • http://www.bloomhouse.com.my/ brandon @ malaysia florist

    i think i will apply the IPO if they really release next year

  • http://noprescriptionrequired.blogspot.com Shalini

    Skype is the reason I can keep in contact with my family. It still has so much more potential. Marketing it on its own seems like a better bet, though. Ebay and Paypal are definitely services that complement one another, but Skype just doesn’t seem to make a trinity.

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