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Another Big Boy eyes the VoIP Market

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  • 09-09-2005 2:34pm
    #1
    Mr_Man
    Registered Users Posts: 638 ✭✭✭


    WASHINGTON/SAN FRANCISCO, Sept 8 (Reuters) - EBay Inc. (EBAY,Trade) is in talks to buy Web telephone phenomenon Skype Technologies SA ((SKYP.UL)), a source said on Thursday, prompting a 4 percent drop in shares of the online auctioneer amid concern Skype could crimp highly-profitable eBay's growth.

    A deal would combine eBay, a company prized by many for its ideal Internet business model -- connecting millions of paying customers as buyers and sellers -- with Skype, a two-year-old Web firm growing explosively, but with limited revenue.

    Negotiations between eBay of Silicon Valley and Luxembourg- based Skype are on-going, but could yet fall through, the source familiar with the situation cautioned.

    M.


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    #2
    Mr_Man
    Registered Users Posts: 638 ✭✭✭Mr_Man


    EBay Inc. (EBAY) said it's offering $1.3 billion cash and $1.3 billion
    in stock, plus up to $1.5 billion in incentives, for Skype Technologies
    SA. Deal talks had been reported between the two companies last week.
    The acquisition will strengthen eBay's global marketplace and payments
    platform, while opening several new lines of business and creating
    significant new monetization opportunities for the company, eBay said.
    The deal will hurt fourth-quarter earnings per share by 1 to 4 cents,
    and 2006 EPS by 4 to 12 cents. Skype's revenue will be $60 million in
    2005 and more than $200 million in 2006, eBay estimated.

    M.


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    #3
    Mr_Man
    Registered Users Posts: 638 ✭✭✭Mr_Man


    EBay to pay $2.6 billion for Skype Technologies
    Customers might one day chat as they transact

    SEATTLE POST-INTELLIGENCER STAFF AND NEWS SERVICES

    Online auction giant eBay Inc. agreed Monday to buy Skype Technologies SA for $2.6 billion in cash and stock.

    The total value of the deal may climb to $4.1 billion based on whether Luxembourg-based Skype meets a series of performance targets over the next three years, San Jose, Calif.-based eBay said. It said the acquisition would create "an unparalleled e-commerce and communications engine" for Internet users worldwide.

    EBay appears to have different intentions for its Voice-over-Internet Protocol acquisition than Microsoft Corp. did when it bought a similar company last month.

    Analysts, while skeptical about the wisdom of eBay's purchase, said Monday that company will probably use the technology to let buyers and sellers communicate quickly and at little cost by phone over the Internet.

    M.


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