Online auction giant eBay Inc. (EBAY) said Monday that it will sell the majority of its stake in online telecommunications service Skype for a reported $2.75 billion.
eBay said it will receive $1.9 billion in cash and a $125 million note from the acquirer, which is an investment group that includes private equity group Silver Lake, Index Ventures, and Andreessen Horowitz, among others.
The group will purchase a 65% stake in Skype, with eBay retaining a 35% stake in the company. The deal is expected to close in the fourth quarter of this year.
Shares of Ebay are up $.61 or 2.72% in early trading.
The Bottom Line
Shares of EBAY are approaching 52-week high levels of $24 a share. The stock has technical support in the $16 price area. If the shares can continue their recent momentum, we see overhead resistance around the $22-$24 price levels. We do not currently rate this non-dividend paying stock, but we do follow the company closely.
eBay Inc. (EBAY) does not currently pay a dividend.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
