Question: On November 19 2009 eBay sold all the capital shares

On November 19, 2009, eBay sold all the capital shares of Skype to Springboard Group. eBay received cash proceeds of approximately $1.9 billion, a subordinated note issued by a subsidiary of the Buyer in the principal amount of $125.0 million and an equity stake of approximately 30 percent in the outstanding capital stock of the Buyer (valued at $620.0 million). The sale resulted in the removal of all Skype-related assets and liabilities, which offset the proceeds noted above, resulting in a net gain of $1.4 billion recorded in interest and other income. In conjunction with the sale of Skype, eBay reached a legal settlement of a lawsuit between Skype, Joltid, and entities controlled by Joltid’s founders, resulting in a $343.2 million charge to general and administrative expense. In addition, eBay recorded a charge for impairment of goodwill for $1.39 billion from the Skype acquisition.
From eBay’s 2009 annual report:

Skype’s operating performance (2007 through 2009), dollars inthousands:

Sale on SolutionInn
  • CreatedMarch 13, 2015
  • Files Included
Post your question