EBay paying up to $4 Billion for Skype
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Can you hear me, now? Money talks.
Reuters reports: “EBay Inc. has agreed to buy Internet phone-calling phenomenon Skype for up to $4.1 billion, tapping a hot source of growth and putting it into rising competition with rivals from Google to local phone company.”
“EBay said on Monday it will pay $1.3 billion in cash and $1.3 billion in stock for explosively growing Skype, which will allow eBay to add free Web telephone calls to its online auctions. It will make a further payout of up to $1.5 billion if certain financial targets are met.
…Skype expects revenue of $60 million this year and more than $200 million in 2006, but has yet to turn a profit. “
Damn. That’s called selling at a healthy multiple.
Tim Draper is a happy man.
This entry was posted on Tuesday, September 13th, 2005 at 1:04 am and is filed under California, Capitalism, Technology. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.