eBay takes $1.4 billion charge on Skype

By lorelei

On a positive note — $1.4 billion ONLY. After acknowledging the disappointment with Skype’s financial performance, eBay said today that it will take $1.4 billion in writeoffs and other charges related to its October 2005 acquisition of the Luxembourg-based provider of Internet telephone services. That’s what happens when you come with a ground breaking idea, help the world talk for free and then spend years head over heals in charges and lawsuits. Niklas Zennstrom (Skype’s co-founder) is stepping down as chief executive of the service but will remain chairman, according to eBay sources.

eBay purchased Skype two years ago for $2.6 billion, hoping in part to encourage free and eay communications between buyers and sellers on the auction service, which was supposed to boost the activity (if you can communicate better, you can sell and buy more, right?).

Anyway, eBay will pay approximately $530 millions to Skype’s former shareholders to end a payout agreement that could have netted them up to $1.7 billion if Skype has achieved certain financial targets in 2008 and 2009.

Oh well, mo’ money — mo’ problems.