EBay To Spin Off Skype In A 2010 IPO

Skype’s revenue is up. Its registered users top 400 million. Now eBay is eager to find out if investors will be willing to dial in.

The online auction house said Tuesday it would spin off Skype into an initial public offering expected in the first half of 2010.

Skypes new iPhone app has been popular

Skype's new iPhone app has been popular

“But it’s clear that Skype has limited synergies with eBay and PayPal,” said eBay CEO John Donahoe in a press release. “We believe operating Skype as a stand-alone publicly traded company is the best path for maximizing its potential.”

Recently Skype’s founders have expressed interest in returning to the company. While eBay did not address future management, it did say current management, led by Josh Silverman, has made progress with the business.

Skype generated 2008 revenue of $51 million, up 44 percent. And registered users total 405 million at the end of last year, an increase of 47 percent.

Skype projects revenue to exceed $1 billion in 2011 – more strong growth.

If the IPO market shows any sign of life by next year, the company will be a hot prospect.

One Response to EBay To Spin Off Skype In A 2010 IPO

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