EBay to sell 65 percent of Skype for $1.9 billion

Internet auction house EBay Inc plans to sell a majority stake in its online phone unit Skype for $1.9 billion to private investors including Silver Lake, a deal analysts said was worth more than expected but may curb eBay's growth potential. The deal valued Skype at $2.75 billion but was well below the $3.1 billion eBay spent in acquiring Skype, and shares in eBay fell more than 2 percent after the news. The company said the sale of a 65 percent stake allows eBay to focus on its auction service and its PayPal electronic payments service and avoid the potential risks of the initial public offering it had slated for Skype for next year. Analysts said the sale to the investors, which included a venture firm run by Netscape co-founder Marc Andreessen, also highlighted concerns about the remainder of eBay, which faces stiff competition from rival Amazon.com Inc.