EBay settles suit with Skype founders that threatened to hamper sale to investor group

By The Associated Press

SAN FRANCISCO - EBay Inc. says a group of investors who are buying the majority of its telecommunications service, Skype, agreed to settle a legal skirmish with Skype's founders.

The online marketplace operator said Friday the settlement gives Skype ownership of software that had in the past been licensed from Joltid Ltd. - a company that was founded by Skype co-founders Niklas Zennstrom and Janus Friis.

It also settles lawsuits that had been filed against the private investor group and eBay once the sale of Skype is completed.

EBay announced on September 1st that it had reached a deal to sell a 65 per cent stake in Skype to an investment group that includes the Canada Pension Plan Investment Board.

Under the settlement, Zennstrom and Friis will become part of the investor group buying Skype and get a 14 per cent stake in the company.

This means that the investor group will own 56 per cent of Skype once the deal closes. EBay will own 30 per cent.