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| eBay completes sale of Skype for $2 bn |
| Press Trust of India / New York Nov 20, 2009, 15:56 IST |
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eBay's stake is now 30%, 70% is with investor group consisting of Silver Lake, Canada Pension Plan Investment Board and others
America's largest online marketplace eBay today said it has completed the sale of its communications unit-- Skype-- to an investor group for $2 billion.
In a statement eBay Inc said the previously announced sale has been completed and as part of the deal "eBay received about $1.9 billion in cash and a note from the buyer in the principal amount of $125 million".
Pursuant to the said deal, investor group including-- Silver Lake and others like Andreessen Horowitz and the Canada Pension Plan Investment Board (CPPIB)-- would hold 70 per cent stake in Skype, while the remaining 30 per cent equity would lie with eBay.
On November 6, eBay reached a settlement agreement with Joltid, which used to provide peer-to-peer communication technology to Skype. As per the settlement Skype got rights for all the that software previously licensed from Joltid.
As part of the settlement agreement, Joltid along with Skype founders-- Niklas Zennstrom and Janus Friis will have a 14 per cent stake in Skype.
As a result, Silver Lake and other investors including Andreessen Horowitz and the Canada Pension Plan Investment Board (CPPIB), will together hold 56 per cent of Skype and eBay will retain 30 per cent.
Besides, completing the deal eBay also purchased "senior debt securities with a face value of $50 million as part of a Skype debt financing".
Reportedly, in September, eBay agreed to sell 65 per cent of Skype to an investor group led by ilver Lake for about $2 billion.
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