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September 12, 2005

eBay Skype = No Hype

Ebay_skypeeBay Skype is on the way. Reuters is reporting that eBay Inc. has agreed to buy Web telephone VOIP ( voice over Internet Protocol ) company Skype, which will allow eBay to add free calls to its online auctions and fuel overall growth. In the deal, EBay plans to pay $1.3 billion in cash and $1.3 billion in stock for Skype. It would make a further payout of up to $1.5 billion by 2008 or 2009 if Skype's financial targets are met, making this deal worth a total value of up to $4.1 billion.

eBay CEO Meg Whitman says Skype will be used with PayPal, and a new eBay Skype Pay-per-call service.

more | CNN International

Voip Watch has some interesting predictions on the deal:

"I see the merger helping eBay grow in new categories and make new marketplaces." read

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