EBay Inc. reached a settlement that will let eBay sell its 56% stake in Internet video company Skype to a group of investors that includes the Canada Pension Plan Investment Board, confirmed eBay spokesman Alan Marks.
Under the settlement with Skype, co-founders Niklas Zennstrom and Janus Friis, the two will become members of the investor group and drop a lawsuit over software technology in exchange for a 14% stake in Skype. EBay will retain the remaining 30% and will receive $1.9 billion in the deal, which is expected to close this quarter.
The settlement clears up an intellectual property lawsuit between eBay and Skype’s co-founders over Skype’s use of the software.
Along with the CPPIB, which manages the C$116.6 billion (US$108.8 billion) Canada Pension Plan, Toronto, the investor group includes private equity firm Silver Lake Partners and venture capital firm Andreessen Horowitz, according to an eBay news release.
Global venture capital firm Index Ventures, which was named as a member of the investor group in early September, has withdrawn from the deal.