Bravo, John Donahoe!
eBay’s boss managed to get Skype off the company’s hands in a deal that looks good for eBay in both the short- and long-term.
Specifically, eBay’s Skype deal:
- Was at the high end of potential valuations for Skype, at $2.75 billion.
- Includes $1.9 billion in cash and a $125 million note, which benefits eBay in the short-term.
- Gets eBay out of the telecom business, which it had no business operating in as an online auction house.
- Gives eBay a 35% stake in a growing, (likely) profitable company, without the hassle of running it, which benefits eBay in the long-term. (Though there is still a legal battle between Skype and its founders over the service’s underlying technology.) Skype’s new owners will want to unload the service someday at a big profit — either to a new buyer or via a public offering — so they have a big incentive to run it the right way.
Either way, good news for investors, who have sent eBay’s shares up 1.6% today, while the NASDAQ is up a more modest 0.85%.