Summary
eBay Inc. filed a Form 8-K on November 20, 2009, to report the completion of the sale of its stake in the Skype Companies. The transaction, which closed on November 19, 2009, involved selling the share capital of Skype Luxembourg Holdings S.à.r.l., Skype Inc., and Sonorit to Springboard Group S.à.r.l., an investor group led by Silver Lake. This divestiture represents a significant strategic shift for eBay, allowing it to focus on its core marketplaces and payment businesses. The terms of the sale included approximately $1.9 billion in cash, a $125 million subordinated note, and a 30% equity stake in the buyer. The filing also details various ancillary agreements, including intellectual property cross-licenses, management services, and a new commercial agreement between a Skype affiliate and PayPal. Notably, Marc L. Andreessen, an eBay board member, has an indirect stake in the buyer through Andreessen Horowitz.
Key Highlights
- 1Completion of the sale of the Skype Companies for approximately $1.9 billion in cash, a $125 million subordinated note, and a 30% equity stake in the buyer.
- 2Sale to an investor group led by Silver Lake, including Joltid Limited, Canada Pension Plan Investment Board, and Andreessen Horowitz.
- 3eBay retains a 30% equity stake in the buyer, indicating continued strategic interest or a phased exit.
- 4Ancillary agreements include intellectual property cross-licenses, management and transitional services, and office space arrangements.
- 5A new commercial agreement was entered into between a Skype affiliate and an affiliate of PayPal, Inc.
- 6eBay purchased $50 million in senior debt securities as part of Skype's debt financing.
- 7Marc L. Andreessen, an eBay board member, has an indirect ownership interest in the buyer.