Friday, November 20, 2009

Ebay sells Skype at a loss

Skype is software that allows people to make phone calls over the Internet. Calls to other users of the service are free. Calls to landline phones and cellphones generally have a fee.

The company that developed Skype was bought by eBay in 2005 for $2.6 billion. eBay hoped that users of its auctions would use Skype to communicate, but few of them did.

EBay is now completing the sale of 70% of Skype for about $2 billion to a group that includes the founders of Skype. Ebay will keep 30 percent.

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