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Skype/eBay rumours intensify

Online auction site would have to pay $2bn-$3bn for VoIP provider

Tom Sanders in California, vnunet.com 09 Sep 2005
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Online auction site eBay is reportedly talking to VoIP provider Skype about a possible acquisition. The deal would cost eBay between $2bn and $3bn. 

Citing sources close to the deal, the Wall Street Journal claimed that talks are at a "sensitive" stage and could yet fall apart.

Internet telephony is outside the scope of eBay's core business of bringing together buyers and sellers of goods and services through a series of websites.

The auction website is interested in the VoIP provider to make it easier to buy and sell goods online, according to the source.

Rumours about Skype being for sale have been around all summer. The firm has allegedly been in talks with Yahoo, Google and Microsoft, although none of those reports have been confirmed. 

Skype is headquartered in London and is based in Luxembourg. The company was founded in August 2003 and has since attracted 53 million users, making it the largest player in the consumer VoIP market.

The software lets users place free voice calls over the internet or call telephone numbers at a discounted rate.

Since its inception, Skype has received about $24m in funding, mainly from venture capital firms.

See also:

SkypeVoIP firm signs up German 3G operator E-Plus  05 Sep 2005
Address book integrated with VoIP application  12 Jul 2005
Skype Zones located at 18,000 Boingo sites  13 Jul 2005
Almost half of all internet telephony goes to the London-based startup  20 Jun 2005
Beta release offers video, voice and data sharing  15 Jun 2005
New version of VoIP client adds Outlook integration  14 Jun 2005

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