eBay to spin off Skype next year

Online auction giant eBay announced plans on Tuesday to spin off Web communications service Skype with an initial public offering next year, ending the troubled relationship between the two firms.
The San Jose, California-based eBay, in a statement, said it expected the IPO for Skype to be completed in the first half of 2010. It said the specific timing would depend on market conditions.
"Skype is a great stand-alone business with strong fundamentals and accelerating momentum," eBay president and chief executive John Donahoe said.
"But it's clear that Skype has limited synergies with eBay and PayPal," he said. "We believe operating Skype as a stand-alone publicly traded company is the best path for maximizing its potential.
"This will give Skype the focus and resources required to continue its growth and effectively compete in online voice and video communications," Donahoe said.
"In addition, separating Skype will allow eBay to focus entirely on our two core growth engines -- e-commerce and online payments -- and deliver long-term value to our stockholders," he said.