eBay commented on the future of the Skype VoIP service on Tuesday, indicating that it intends to spin-off the subsidiary through an initial public offering. The emergence of this news casts doubt on any potential sale back to the original founders, who reportedly were keen to get their hands on the service once again. eBay had made some indications in recent times that it might sell Skype.
Shareholders will be pleased with the news, as they have been pushing for a sale of Skype or a spin-off. “We believe operating Skype as a stand-alone publicly traded company is the best path for maximizing its potential,” eBay Chief Executive John Donahoe said in a statement. He added that there were few synergies with the larger company.
eBay acquired Skype in 2005 for $2.6 billion from Niklas Zennstrom, from Sweden, and Janus Friis, from Denmark. When eBAy signaled it may be ready to unload the company for the right price, Zennstrom and Friis reportedly began seeking to raise a billion dollars from private equity firms. The auction giant was reported to be expecting no less than $1.7 billion for the company.
Result for: subsidiary
Barnes & Noble has formally jumped into the e-book market this week, purchasing the e-book retailer Fictionwise for $15.7 million USD.
William Lynch Jr., CEO of B&N, added that the company will be launching an e-book store later this year and that they purchased Fictionwise because they had “one of the most popular applications on the iPhone, and they really understand merchandising.”
Fictionwise, which launched almost a decade ago, has sold about 5 million e-books and “will operate as an independent subsidiary of Barnes & Noble.” Lynch Jr. reminds that Barnes & Noble was one of the first large retailers to begin offering e-books, which it did in 2001, but quit the practice in early 2003 as sales were virtually non-existent.
Fictionwise co-founder Stephen Pendergrast noted that he estimates the US e-book market amounted to $100 million USD in revenue for 2008 and expects the market to continue to grow.
Result for: subsidiary
Barnes & Noble has formally jumped into the e-book market this week, purchasing the e-book retailer Fictionwise for $15.7 million USD.
William Lynch Jr., CEO of B&N, added that the company will be launching an e-book store later this year and that they purchased Fictionwise because they had “one of the most popular applications on the iPhone, and they really understand merchandising.”
Fictionwise, which launched almost a decade ago, has sold about 5 million e-books and “will operate as an independent subsidiary of Barnes & Noble.” Lynch Jr. reminds that Barnes & Noble was one of the first large retailers to begin offering e-books, which it did in 2001, but quit the practice in early 2003 as sales were virtually non-existent.
Fictionwise co-founder Stephen Pendergrast noted that he estimates the US e-book market amounted to $100 million USD in revenue for 2008 and expects the market to continue to grow.
