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Tue Sept 1 2009 10:21:07

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

By: Ina Steiner

Sponsored Link

It's official - eBay has sold Skype, the VoIP telecommunications company that former CEO Meg Whitman acquired in 2005 - however, eBay will retain 35% of the company. Skype turned into eBay's albatross - not only did eBay vastly overpay for a company that current CEO John Donahoe said had no synergies with eBay and PayPal, but apparently eBay did not buy the technology behind Skype, resulting in a lawsuit between eBay and Skype's founders.

Here's what eBay CEO John Donahoe said about today's deal:

"This is a great deal, unlocking both immediate and long-term value for eBay and tremendous potential for Skype. We've acted decisively on a deal that delivers a high valuation, gives us significant cash up-front and lets us retain a meaningful minority stake with talented partners. Skype is a strong standalone business, but it does not have synergies with our e-commerce and online payments businesses. 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."

And here are the details of the deal:

eBay has signed a definitive agreement to sell its Skype communications unit in a deal valuing the business at $2.75 billion. The buyer, who will control an approximately 65 percent stake, is an investor group led by Silver Lake and includes Index Ventures, Andreessen Horowitz and the Canada Pension Plan (CPP) Investment Board. eBay is expected to receive approximately $1.9 billion in cash upon the completion of the sale and a note from the buyer in the principal amount of $125 million. The company will retain an approximately 35 percent equity investment in Skype. The transaction, which is not subject to a financing condition, is expected to close in the fourth quarter of 2009.




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eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: Ebay Pays My Minimum Monthly Payment

Tue Sep 1 10:36:28 2009


''The transaction, which is not subject to a financing condition, is expected to close in the fourth quarter of 2009.''

Must be a Paypal only deal.

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: Jo

Tue Sep 1 10:38:34 2009

My guess is that the lack of synergies jd mentioned early on was made because he found out then that they didn't own key technology to the skype site before it was ever made public. JMO

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: Neg Meg

Tue Sep 1 10:53:03 2009

I can't wait to see this come back and bit Meg square in the a$$ in her CA gubernatorial campaign.

Looks like one more ''feather in her cap'' just got plucked.

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: Jo

Tue Sep 1 11:14:37 2009

Sorry Ina & Dave but there is no thread for this but I thought you should know that yourgmdealer has received a 3rd negative feedback making their percentage 57.1%.

http://feedback.ebay.com/ws/eBayISAPI.dll?ViewFeedback2&
userid=yourgmdealer&ftab=AllFeedback

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: Sals

Tue Sep 1 11:17:18 2009

Ha . 30% is still owned by Ebay. We see how well that works with Craigslist. Ebay will have a minority stake but a majority backbone with deep wallets.

Sorry investers, but the deal should had been for 100%. You screwd yourselves.

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: Jo

Tue Sep 1 11:31:57 2009

On a lighter note if you revised this thread to address the GM issue the topic could be retitled as meg and johns follies.

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: On Lies and Secrets

Tue Sep 1 11:45:36 2009

...and the empire crumbles.....

I wonder what other pieces are going to fall off in the next few months.  

IMO the ebay corporation is falling apart.

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: On Lies and Secrets

Tue Sep 1 11:48:08 2009

But this news is probably good for Skype.  Skype needs to get away from ebay's poor management.

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: Jeff Stannard

Tue Sep 1 12:05:47 2009

Item as described 2.3
Communication 4.9
Shipping time 4.8
Shipping and handling charges 4.7

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: griffsaystheselleriswrong

Tue Sep 1 12:07:47 2009

Meg Whitman bought Skype as part of founding her empire.  It never had any longterm value.

Now that Ebay is getting GOVERNMENT BAILOUT MONEY, Donahoe figures he doesn't even have to bother anymore.

http://www.associatedcontent.com/article/2074169/ebay_
will_receive_scammed_us_government.html?cat=3

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: Cindy

Tue Sep 1 12:10:03 2009

With the way Ebay operates, doesnt' surprise me that Skype wasn't successful, and they couldn't squeeze the users of it for every penny, like they do on Ebay.

Poor management, and look for more changes to Ebay, as the site spirals downward!

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: Patricia

Tue Sep 1 12:27:42 2009

A healthy company would have hung onto Skype knowing that it is profitable.  They would have settled the legal problem out of court and continued on.  BUT, I seriously doubt Ebay is a healthy company right now.  Its on a path to disaster - the only real niche (and monopoly) it had was in auctions and listings from small sellers.  When that started to tire they decided to tear it all down and start on a disasterous path - instead of merely revitalizing the platform they had!  There are too many good retailers such as Amazon who can do the retail job SO much better!  Ebay is like a patchwork quilt - trying to compete with Amazon (and soon Walmart) by foolishly piecing together badly thought out policies and changes.  Its an utter failure that is truly beginning to crumble.  

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: christine

Tue Sep 1 12:33:24 2009

Good riddens to Skype. eBay used the company the wrong way.

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: JOE

Tue Sep 1 12:34:56 2009


Only a complete NITWIT would continue to use Skype after trying it.

No One at ebay uses it I bet. They don't use skype to call me , This I Know...

Skype Sucks..as for Whitman, Donahoe and Norrington, I don't care to know.


Sellers left, now buyers have left in droves...

Just keep promoting your own website thru Google you'll be fine.

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: Jo

Tue Sep 1 12:36:46 2009

@ Patricia....You are correct. If Walmart gets into this on a large scale it is big problems for eBay. Image if they lost buy to Walmart. Imagine if the big sellers on eBay decided to sell on Walmart. What a slap in the face for jd. He burned all his bridges with the small sellers, if the large ones leave then so long eBay, so long meg for Gov, so long jd.  

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: Allan Kraig

Tue Sep 1 13:09:03 2009

What is funny (not funny haha) is where the money will go .. This money will be held off shore in eBay's coffers so they don't have to pay taxes on it or pay anything out in dividends .. So it's another slight of hand for eBay's cash load again .. I'm sure the USA exec's will get bonuses based on the sale taken from the USA balance to further strap the USA balance sheet while eBay's supposed big cash balance is held in SWISS bank accounts out of the goverments & stock holders reach ..

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: nora

Tue Sep 1 13:34:52 2009

How can eBay sell Skype when they are still in a lawsuit with Joltid over a crutial piece of technology that eBay says without the technology there is no Skype.

Something's not right. Seems the lawsuit should of been settled first.

Quote from article; ''UPDATED: The Skype is falling?  Google runs away from sale, again''

''The trial between Skype and JoltId, the company that produced the Skype technology, appears to be over the licensing terms of the technology and is expected to take place in June of 2010.  eBay hasn’t said what part of Skype runs on the licensed tech, but has said that without the license, there is no Skype.  Skype engineers are at work to create their own software but it isn’t clear how close they are and how much of a drain on resources that will be or even if it can be done.  Gulp.''

http://www.gadgetell.com/tech/comment/the-skype-i
s-falling-google-runs-away-from-sale-again/

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: ItoldUso

Tue Sep 1 13:38:43 2009

HaHaHa...I gotta love the original developers of Skype.  It is soooo refreshing that somebody gave Pierre, Meg, and John Donahoe some of their own medicine on this Skype thing...Not getting all the code when they bought skype is a classic example of how totally clueless and ignorant eBay management is...They're all a bunch of EDUCATED BUMBLING IDIOTS....Now Donahoe is relegated to l hr meetings with SMALL SELLERS in order to try and con them into NOT twittering the bad state of eBay (If he REALLY wanted to get to the root of the small sellers problems/gripes/visions/needs, he would stay for the entire 3-4hr session and NOT duck out after 1 hr)...Social and Viral Communication  will be the DEATH of eBay....eBay management can't keep screwing eBay Sellers and get away with it....THE DOMINOS ARE GETTING READY TO FALL...Donahoe can CON/FOOL the Journalists, Wall Street, and the Investors, but, he's having trouble conning most of the little people that are in the trenches, other than the handful of  loudmouth, outspoken eBay Cheerleaders!........KEEP TWITTERING ALL THE DISCRIMINATORY, CONTROVERSIAL AND CRIMINAL THINGS EBAY & PAYPAL ARE DOING.....We can force them into becoming a fair and responsible US corporation or do our best to put their ass out of business!!!

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: Toodles

Tue Sep 1 13:47:52 2009

There is no doubt that ebay has gone to the dogs.. and is cancer riddled...
it's just a matter of time.. before PAYPAL becomes a 'hasbeen'.. and falls by the way side as well.

Good riddens to bad rubbish..
with them changing rules and polices every other minute... a total joke


 Ebay has lost its credability... and everything they come in contact.. is boobytrapped...

 I'm surprised Skype made it this far...
@ Allan Kraig :  You are absolutely right! hopefully our gov't will be a couple of steps ahead of the cash diversion. After Madoff..and all that has gone on this past 12-18 months... I think it's time for everyone doing business in THE USA.. to disclose everything. !
KEEP OUR MONEY HERE ! KEEP OUR JOBS HERE!

 Lets see where the money from 'Skype' ends up... should be interesting...
heave ho to DonHo..

and just  Say 'NO' to Meg

eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype   eBay Unloads Meg's Folly, Gets $1.9 Billion for 65% of Skype

by: Lynn

Tue Sep 1 13:56:32 2009

Doesn't Oprah use "SKYPE"?

What will happen to her show if she doesn't have "SKYPE" ? OMGAWD!!!!

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