BizJournals Portfolio

Yipe! Skype

EBay to take $1.4 billion charge on internet phone service.

Skype, an internet phone business, has yet to live up to its promise since being acquired by eBay for $2.6 billion in 2005. Skype's revenues have been surging, but it has not demonstrated how it can benefit eBay's main auction business.

Today, eBay said it would take $1.4 billion in charges because of Skype. About $530 million of the charges are to complete payments related to the 2005 deal.

And perhaps more important, Niklas Zennstrom, one of Skype's co-founders, has stepped down as chief executive. That may be a precusor to a greater integration of Skype into eBay.

Michael van Swaaij, eBay's chief strategy officer, will become acting C.E.O. until a permanent successor is found.


blog comments powered by Disqus
Real Business, Real Results

Did anyone at Microsoft ever watch the (gasp!) offensively funny show Family Guy?

Ex-Morgan Stanley exec Zoe Cruz is now heading her own hedge fund. Are Wall Street's leaders done?

Martha, Bernie and Skilling know that what you wear for court can go a long way in public perception.

spotlight on

Health Care

Bad to the Bone No More

Companies such as General Mills say they're stepping up efforts to change employees' bad behavior and promote healthier lifestyles. Read More