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CommentFriday, September 16, 2005

EBay Could Add To Skype Deal

The cash and stock deal for online VoIP darling Skype could pile $1.5 billion on top of the agreed-upon price.

The online auctioneer eBay will provide Skype's founders and investors with the windfall deal they've apparently sought in the marketplace. After paying $1.3 billion in cash and another $1.3 billion in stock for Skype, eBay may pay "certain Skype shareholders" as much as $1.5 billion by 2009, according to CNNMoney.com.

To get that payday, Skype will have to achieve three financial targets. EBay has not disclosed those targets in additional investor information provided on its web site. But the basic details will see Skype's investors gain $1.1 billion if Skype hits those targets before June 29, 2009.

Those Skype shareholders will want to see those targets achieved by 2008. If that happens, CNNMoney notes an additional $400 million will be paid on top of the $1.1 billion bonus.

At the heart of the deal rests the pay-per-call model, where eBay can monetize its Skype investment. Sellers in the automotive, travel, and services markets should find buyers will be more interested in their offerings if they can call with questions, instead of asynchronously exchanging emails.
Removing the communication concerns in a high-dollar market like auto sales helps eBay "remove a key friction." Features like feedback, product photos, and PayPal were implemented with similar aims in mind.

David Utter is a staff writer for WebProNews covering technology and business. Email him here.

News Tags: eBay, skype

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