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EBay weighs selling Skype

Business Materials 19 April 2008 01:17 (UTC +04:00)

(dpa) - EBay Inc is considering selling its Skype internet telephone division unless it can be combined with other units, the company said.
EBay will review Skype this year to see if it is helping its online auction and PayPal systems, eBay Chief Executive John Donahoe told Britain's Financial Times on Friday.
If the results don't pan out, the company would take a new look at the situation. This could lead to selling Skype, the report said.
But Donahoe dismissed reports that eBay wanted to sell the internet payment system PayPal, which Donahoe said brings huge advantages to eBay and which the company wants to hold on to "for many years," Donahoe said.
EBay bought Skype, which processes phone calls over the internet at great savings compared to cell and land phone lines, for 2.6 billion dollars in 2005.
The online auction company had intended to put Skype to use in selling goods online, but EBay said last year already that the phone service was not measuring up to those expectations.
EBay wrote off 1.39 billion dollars for Skype in October, Bloomberg financial news service reported.
More than 309 users have registered with Skype, which generated revenues of 500 million dollars this year. Skype says it is also producing a profit.

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