Description: All you 480 million Skype users out there should be rejoicing today, now that the Internet calling and video service has been freed from the clutches of eBay. As was announced this morning, eBay is selling a 65% stake in Skype for $1.9 billion in cash to a group of private equity shops and venture capitalists.
Keys: Investing, IPO
Questions for discussion:
- Do you think the partial sale of Skype was motivated by the concern of a lower value in the near future? Explain your thinking.
- How is this news good financially for eBay?
- Assuming an IPO is planned for Skype, how can this deal help Skype? eBay? Explain your answer.