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November 06, 2009
Skype Rejoices as eBay Suit Settled Friday
TMCnet Editor
eBay (News - Alert) said Friday it has settled the litigation for sale of Skype, the popular Internet-based calling service that allows people to make free video and voice calls.
According to reports, Skype (News - Alert) founders Niklas Zennström and Janus Friis plan to drop their lawsuits against the company and the consortium of buyers whose bid to purchase 65 percent of Skype was announced last month. Under the new deal, the founders will own 14 percent of the company.
According to eBay, the deal – expected to close in Q4 2009 -- values Skype at $2.75 billion and is not subject to a financing condition.
eBay’s share of the new Skype will drop to 30 percent, and investor group comprising Silver Lake, Andreessen Horowitz and the Canada Pension Plan Investment Board will own 56 percent, according to reports.
Calling the news “exciting,” Skype CEO Josh Silverman posted a blog highlighting the positive implications of the settlement eBay and Skype reached with Skype founder’s company Joltid. Blogging on behalf of Skype, Silverman stated:
- We will now have ownership of the software previously licensed from Joltid, so we’ll be in control of our technology future;
- All litigation against eBay, Skype and the investor group ends, so we’ll be free to concentrate all of our efforts on building the world’s greatest communications software;
- Joltid and Skype founders Niklas Zennström and Janus Friis will join the investor group and the Skype board with a 14 percent share in exchange for providing Joltid software and a significant capital investment, so we’ll benefit from their expertise, vision and continued commitment to making Skype a long-term success.
“Skype will be well positioned to move forward under new owners with ownership and control over its core technology,” said eBay ECO John J. Donahoe, in a press statement. “At the same time, eBay continues to retain a significant stake in Skype and will benefit from its continued growth. We look forward to closing the deal and focusing on growing our core e-commerce and payments businesses.”
Marisa Torrieri is a TMCnet Web editor, covering IP hardware and mobility, including IP phones, smartphones, fixed-mobile convergence and satellite technology. She also compiles and regularly contributes to TMCnet's gadgets and satellite e-Newsletters. To read more of Marisa's articles, please visit her columnist page.
Edited by Marisa Torrieri
