EBay to take $1.4 bil impairment charge
EmptyNEW YORK -- Online auctioneer eBay Inc. said Monday it will take an impairment charge of about $1.43 billion in its third quarter, due in part to payments it made to some Skype shareholders as part of an earn-out agreement.
EBay said it paid $530 million to settle future obligations it had with some shareholders under an agreement that stemmed from its 2005 purchase of Skype.
EBay anticipates recording this amount and an additional $900 million as impairment charges in its third-quarter financial report.
Under the earn-out agreement, eBay was required to pay up to about $1.7 billion based on things like Skype's number of active users and sales and gross profit targets in 2008 and the first half of 2009.
Ebay shares rose 35 cents, or 0.9%, to $39.37 in morning trade Monday.