eBay is going to buy Skype for $2.6 billion, paying half of it in cash and half in stocks and a conditional payment of $1.5 billion later.


eBay has decided to buy internet telephone company Skype and gain the ability to add free web-based telephone calls to its online auctions. eBay will pay $1.3 billion in cash and $1.3 billion in stock and could pay up to an additional $1.5 billion by 2008 or 2009 if financial targets are met, for a potential deal value of up to $4.1 billion.

eBay Chief Financial Officer Rajiv Dutta said, “Once we integrate communications into e-commerce, we think that (Skype) is going to remove considerable friction” from the buying and selling process”.

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