Summary
eBay Inc. has filed an 8-K report detailing significant amendments and a settlement agreement related to the sale of its stake in Skype. The company, along with its subsidiaries, entered into Amendment No. 3 to the share purchase agreement with Springboard Group S.a.r.l. to sell the Skype Companies. This amendment reflects a settlement of ongoing litigation involving Joltid Limited, which will transfer its software rights to Skype and end all pending lawsuits upon the transaction's completion.
Key Highlights
- 1eBay entered into Amendment No. 3 to its share purchase agreement for the sale of Skype.
- 2A settlement agreement was executed, resolving litigation with Joltid Limited and its affiliates.
- 3Joltid Limited will transfer all licensed software to the Skype Companies.
- 4The pending litigation by Joltid against eBay and the investor group will be terminated.
- 5eBay's equity stake in the buyer (Springboard Group) at closing will be reduced from approximately 35% to around 30% due to equity issuances related to the settlement.
- 6Marc L. Andreessen, an eBay board member, is a general partner at Andreessen Horowitz, which will own less than 5% of the buyer.
- 7The filing date of the report is November 6, 2009, with the earliest event reported being November 5, 2009.