eBay to Acquire Skype

eBay Inc has agreed to acquire Luxembourg-based Skype Technologies SA, the

global Internet communications company, for approximately $2.6 billion in

up-front cash and eBay stock, plus potential performance-based consideration.

The acquisition will strengthen eBay's global marketplace and payments

platform, while opening several new lines of business and creating significant

new monetization opportunities for the company.

The deal also represents a major opportunity for Skype to advance its

leadership in Internet voice communications and offer people worldwide new ways

to communicate in a global online era. Skype, eBay and PayPal will create an

unparalleled ecommerce and communications engine for buyers and sellers around

the world.

"Communications is at the heart of ecommerce and community," said

Meg Whitman, President and Chief Executive Officer of eBay. "By combining

the two leading ecommerce franchises, eBay and PayPal, with the leader in

Internet voice communications, we will create a powerful environment for

business on the Net."

MEG WHITMAN To create a powerful environment for business on the Net with eBay and PayPal

Founded in 2002 by Niklas Zennström and Janus Friis, Skype offers

high-quality voice communications to anyone with an Internet connection anywhere

in the world. Its software is easy to download and install, and enables free

calls between Skype users online. Its premium services provide low-cost

connectivity to traditional fixed and mobile telephones.

Skype's software also offers a robust set of features, including voicemail,

instant messaging, call forwarding and conference calling. Upcoming product

innovations include Skype video, expressive content such as avatars, and

customized toolbars for Outlook and Internet Explorer.

One of the fastest growing companies on the Internet, Skype already has 54

million members in 225 countries and territories. The company is currently

adding approximately 1,50,000 users a day and has created a thriving ecosystem

of products, services, developers, and affiliates. It is considered the market

leader in virtually all countries in which it does business. In North America

alone, Skype has more users and serves more voice minutes than any other

Internet voice communications provider.

"Our vision for Skype has always been to build the world's largest

communications business and revolutionize the ease with which people can

communicate through the Internet," said Niklas Zennström, Skype's CEO

and Co-founder. "We can't think of any better platform to fulfill this

vision to become the voice of the Internet than with eBay and PayPal."

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