Monday, September 12, 2005
EBay to buy Skype - Yahoo! News:
"SAN FRANCISCO (Reuters) - EBay Inc. (Nasdaq:EBAY - news) has agreed to buy the fast-growing Internet start-up Skype in a move to add free Web telephone calls to its online auctions and fuel growth, the companies confirmed on Monday.
EBay said it plans to pay $1.3 billion in cash and $1.3 billion in stock for the Web communications company. It would make a further payout of up to $1.5 billion by 2008 or 2009 if financial targets are met, giving the deal a total value of up to $4.1 billion, executives of the two companies said.
EBay is renowned for an Internet business model linking millions of buyers and sellers, but its core U.S. market is maturing, slowing to annual growth of between 20 percent and 30 percent a year, compared with 50 percent international growth.
Skype, which said it expects revenue of $60 million this year and more than $200 million in 2006, has raced to the lead in the booming voice-over-Internet (VOIP) market, which is being aggressively targeted by online powerhouses like Yahoo (Nasdaq:YHOO - news), Google (Nasdaq:GOOG - news) and Microsoft (Nasdaq:MSFT - news)..."
"SAN FRANCISCO (Reuters) - EBay Inc. (Nasdaq:EBAY - news) has agreed to buy the fast-growing Internet start-up Skype in a move to add free Web telephone calls to its online auctions and fuel growth, the companies confirmed on Monday.
EBay said it plans to pay $1.3 billion in cash and $1.3 billion in stock for the Web communications company. It would make a further payout of up to $1.5 billion by 2008 or 2009 if financial targets are met, giving the deal a total value of up to $4.1 billion, executives of the two companies said.
EBay is renowned for an Internet business model linking millions of buyers and sellers, but its core U.S. market is maturing, slowing to annual growth of between 20 percent and 30 percent a year, compared with 50 percent international growth.
Skype, which said it expects revenue of $60 million this year and more than $200 million in 2006, has raced to the lead in the booming voice-over-Internet (VOIP) market, which is being aggressively targeted by online powerhouses like Yahoo (Nasdaq:YHOO - news), Google (Nasdaq:GOOG - news) and Microsoft (Nasdaq:MSFT - news)..."
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