EBay plans to spin off its Skype unit, citing the VoIP company does not fit with the rest of the company. The split is a good move in my opinion. Yahoo News has more:
EBay to say goodbye to Skype
EBay plans to spin off its Skype unit, acknowledging that the Web telephone service does not fit with the rest of the company, in an indictment of former CEO Meg Whitman’s acquisition strategy.
EBay, whose shares rose 3 percent in after-hours trade, said on Tuesday it was planning an initial public offering for Skype by the first half of 2010, a move widely seen as putting a ‘for sale’ sign on the unit to fetch potential buyers.
Two people familiar with eBay’s thinking said the online auction company could seek substantially more than $2 billion for Skype. But some analysts doubted that it could fetch so much in current markets.
The San Jose-based eBay bought Skype in 2005 for $2.6 billion, in what was its biggest ever acquisition. John Donahoe, who became eBay chief executive a year ago, has vowed to evaluate whether the telephone service was a good fit with the rest of the company, which includes Web payments service PayPal along with its core auctions business.
“We believe operating Skype as a stand-alone publicly traded company is the best path for maximizing its potential,” Donahoe said in a statement on Tuesday. (Source: Yahoo)