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Skype to break away from eBay with IPO
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Published: April 15, 2009
NEW YORK - EBay Inc. plans to spin off its Internet communications service Skype through an initial public offering.
San Jose, Calif.-based eBay expects to complete the IPO in the first half of next year, though it says the timing will be based on market conditions.
EBay bought Skype for $2.6 billion in October 2005, hoping that buyers and sellers on its online marketplace would use it to communicate. EBay took a major writedown on the business in 2007, essentially acknowledging it had drastically overvalued it.
In a statement, CEO John Donahoe said it's clear Skype has "limited synergies" with eBay's online marketplace and with its payment service, PayPal.
The announcement comes a day after two founders of StumbleUpon said they had bought the Web content recommendation service back from eBay, which had purchased it two years ago for $75 million.
EBay shares rose 56 cents, or 3.9 percent in after-hours trading.
The Associated Press
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