eBay sells most of Skype for $2 billion

eBay announced earlier today it is selling Skype. eBay will receive approximately $1.9 billion in cash. The deal is expected to close in the fourth quarter

eBay will also receive a note from the buyer in the principal amount of $125 million, bringing the sale total to $2.025 billion. CNet reports the buyer is an investor group that includes Marc Andreessen's new venture. The investor group, led by Silver Lake, includes Index Ventures, Andreessen Horowitz, and the Canada Pension Plan Investment Board. They will receive roughly a 65 per cent stake in Skype while the other 35 percent will be retained by eBay. Skype is likely to see an IPO in the coming months, and the companies involved, valuing it at $2.75 billion. Skype was bought by eBay for $2.6 billion in 2005 with the plans to offer customers the ability to discuss their transactions in real time. Things have not worked out as eBay would have liked as the company discovered the acquisition failed to provide what it sought. "Skype is a strong standalone business, but it does not have synergies with our e-commerce and online payments businesses," eBay President and CEO John Donahoe said in a statement Tuesday. "As a separate company, we believe that Skype will have the focus required to compete effectively in online voice and video communications and accelerate its growth momentum." "This transaction benefits...will allow Skype the opportunity to accelerate the growth of its business by harnessing the deep technological and company development expertise that resides within the investor group," Egon Durban, managing director at Silver Lake, said in a statement.