Key Developments For eBay Inc
eBay Inc (EBAY.O) (Nasdaq)
eBay Inc. Teams Up With Microsoft Corp. To Offer Daily Deals
Microsoft Corp. and eBay Inc. announced that they are partnering to offer eBay Daily Deals through a new Internet Explorer 8 Web Slice for the holidays. With most holiday shoppers looking to save money, Microsoft and eBay will present online Daily Deals through a new Windows Internet Explorer 8 Web Slice that will showcase products selling at deep discounts. Customers will receive continuing updates and detailed information about these Daily Deals for eBay, all within the Favorites Bar in Internet Explorer 8.
eBay Inc. Completes Sale Of Skype
eBay Inc. announced that it has completed the previously announced sale of its Skype communications unit in a deal valuing the business at $2.75 billion. The buyer, who will control an approximately 70% stake, is an investor group led by Silver Lake and includes Joltid Limited and certain affiliated parties, the Canada Pension Plan Investment Board and Andreessen Horowitz. eBay received approximately $1.9 billion in cash and a note from the buyer in the principal amount of $125 million. The Company retained an approximately 30% equity investment in Skype. The Company also purchased senior debt securities with a face value of $50 million as part of a Skype debt financing.
eBay Inc.'s Skype Suitors Reach Legal Pact; Deal To Proceed-Reuters
Reuters reported that eBay Inc. said that private investors looking to buy Skype had agreed to settle litigation with Skype's founders, who will get a 14% stake in Skype in the transaction. Under the agreement, Silver Lake and investors including Andreessen Horowitz and the Canada Pension Plan Investment Board (CPPIB), will together hold 56% of Skype and eBay will retain 30%. The buyers will no longer include Index Ventures. The Skype founders had filed a lawsuit accusing Index and its partner Michelangelo Volpi of using confidential information in their bid to acquire a 65% stake in Skype. Under the deal, eBay will get approximately $1.9 billion in cash and a note from the buyer worth $125 million. The deal values Skype at $2.75 billion and is not subject to a financing condition. It is expected to close in the fourth quarter of 2009, eBay said. The agreement gives Skype ownership over all software previously licensed from Joltid and ends all litigation pending against the investor group and eBay at the closing of the acquisition.
eBay Inc. Issues Q4 2009 Guidance In Line With Analysts' Estimates
eBay Inc. announced that for fourth quarter of 2009, it expects net revenues in the range of $2.20-$2.30 billion with GAAP earnings per diluted share (EPS) in the range of $0.28-$0.30 and non-GAAP earnings per diluted share in the range of $0.38-$0.40. These amounts assume a mid-quarter close date for the pending sale of Skype and do not reflect the gain on the pending sale of Skype of approximately $1.0 billion. According to Reuters Estimates, analysts were expecting the Company to report revenues of $2.25 billion and EPS of $0.40 for the same period.
eBay Inc. To Lay Off Several Dozen Employees As Part Of Internal Restructuring-AP
The Associated Press reported that eBay Inc. expects to lay off several dozen workers as part of an internal restructuring plan. eBay said that the changes will include fewer than 60 job cuts as well, most of them coming from the Company's product and technology areas. The impending layoffs were communicated to employees in September. They were told that a decision regarding the number of layoffs being made would come within 30 days.
