Telecompaper

Silver Lake-led investor group, which had previously entered into a definitive agreement to acquire a majority stake in Skype from the company, has reached a settlement agreement with Joltid and Joost that gives Skype ownership over all software previously licensed from Joltid and ends all litigation currently pending against the investor group and eBay at the closing of the acquisition. As part of the settlement agreement, Joltid and Skype founders Niklas Zennström and Janus Friis will join the investor group, contributing Joltid software and making a significant capital investment in exchange for a 14 percent stake in Skype. As a result, Silver Lake and other investors including Andreessen Horowitz and the Canada Pension Plan Investment Board (CPPIB), will together hold 56 percent of Skype and eBay will retain 30 percent. As previously announced, eBay will receive approximately USD 1.9 billion in cash upon the completion of the sale and a note from the buyer in the principal amount of $125 million. The deal, which values Skype at USD 2.75 billion and is not subject to a financing condition, is expected to close in the fourth quarter of this year. The investor group will no longer include Index Ventures, which has withdrawn from participation. Danny Index Venture's Danny Rimer said that the deal terms changed for Index such that it no longer matches their investment criteria.