EBay sells 70% of its stake in Skype

eBay has sold 70 per cent of its stake in Skype for $1.9 billion in cash and a note of $125 million to an investor group led by Silver Lake.

The company will retain 30 per cent stake in Skype. The deal values the internet calling service at $2.75 billion. The company had announced its plans about Skype in April 2009.

Beginning with an IPO in 2010. The decision followed a year-long review of Skype within eBay's portfolio. As it prepared for an IPO, the company said it would naturally consider bids for Skype that offered an attractive valuation.

Registered Skype users reached 405 million by the end of 2008, a 47 per cent increase from 2007. Skype is claimed to attract hundreds of thousands of new users each week.