Private Equity Investor PLC, Skype and eBay

Private Equity Investor notes the recent increase in its share price which it attributes to the announcement on 12th September by eBay Inc. of an agreement to purchase Skype Technologies SA, a Luxembourg based company. Private Equity Investor holds a position in Skype through its investment in Draper Fisher Jurvetson ePlanet Ventures LP (“DFJ”).

Skype is a telephony company whose subscribers can make free calls to one another over the internet. Its software also allows PC users to make cut price calls to mobiles and landlines.

eBay has agreed to purchase Skype for $2.6 billion in a combination of cash and shares with a further potential payment of $1.5 billion over the next three years based on Skype achieving certain performance targets.

Assuming completion of the transaction Private Equity Investor would receive an equal amount of cash and shares in eBay with a current value in excess of $13 million. Shareholders should note that the eBay shares would be subject to restrictions on sale and the proceeds might also be reduced by DFJ’s “carried interest” entitlement of up to 25% of gains made by DFJ as a whole.

Private Equity Investor Plc
Tel: 020 7930 5600