eBay Inc. (EBAY:NASDAQ)

eBay Inc. announced that the investor group led by Silver Lake, which had previously entered into a definitive agreement to acquire a majority stake in Skype from the company, has reached a settlement agreement with Joltid Limited and Joost N.V. that gives Skype ownership over all software previously licensed from Joltid and ends all litigation currently pending against the investor group and eBay at the closing of the acquisition. As part of the settlement agreement, Joltid and Skype founders Niklas Zennstrom and Janus Friis will join the investor group, contributing Joltid software and making a significant capital investment in exchange for a 14% stake in Skype. As a result, Silver Lake and other investors including Andreessen Horowitz and the Canada Pension Plan Investment Board (CPPIB), will together hold 56% of Skype and eBay will retain 30%. As previously announced, eBay will receive approximately $1.9 billion in cash upon the completion of the sale and a note from the buyer in the principal amount of $125 million. The deal, which values Skype at $2.75 billion and is not subject to a financing condition, is expected to close in the fourth quarter of 2009.

eBay Inc. announced the launch of The Inside Source, a new digital magazine for inspired shoppers featuring insights and stories based on what more than 89 million active users are searching for, buying and selling on eBay. The Inside Source will offer fresh daily content with original articles, analysis and opinions from journalists as well as eBay community contributors. In addition to original content, The Inside Source will also feature sections that will provide a snapshot of real time eBay Marketplace activity, including most-watched merchandise and most searched terms. Early contributors include writers and editors who have worked at and contributed to Lucky, W, Allure, Daily Candy, and The New Yorker.

eBay Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company has posted revenue of $2,237.8 million compared to $2,117.5 million for the same period a year ago. The year-over-year revenue growth was driven primarily by the continued growth in PayPal, Skype, the company's classifieds business as well as growth in eBay's fixed-price format. The company recorded net income on a GAAP basis of $349.7 million or $0.27 per diluted share, and non-GAAP net income of $501.5 million or $0.38 per diluted share. Non-GAAP net income was $502 million or $0.38 diluted per share compared to $592 million or $0.46 diluted per share for the same period a year ago. Income from operations was $442.9 million compared to $524.0 million for the same period a year ago. Income before income taxes was $438.33 million compared to $562.64 million for the same period a year ago. Net cash provided by operating activities $738.24 million compared to $693.40 million for the same period a year ago. Purchases of investments were $415.91 million compared to $84.06 million for the same period a year ago. Purchases of property and equipment, net was $174.7 million compared to $150.41 million for the same period a year ago. For the nine months, the company has posted net revenue of $6,356.4 million compared to $6,505.4 million for the same period a year ago. Income from operations was $1,277.3 million compared to $1,622.2 million for the same period a year ago. Income before income taxes was $1,286.3 million compared to $1,710.2 million for the same period a year ago. Net income was $1,034.1 million or $0.80 diluted per share compared to $1,412.2 million or $1.07 diluted per share for the same period a year ago. Net cash provided by operating activities $2,137.4 million compared to $2,198.0 million for the same period a year ago. Purchases of investments were $468.3 million compared to $107.9 million for the same period a year ago. Purchases of property and equipment, net was $394.1 million compared to $406.7 million for the same period a year ago. For the fourth quarter ending December 31, 2009, the company expects net revenues in the range of $2.20 billion to $2.30 billion and non-GAAP revenue in range of $2.20 billion to $2.30 billion with GAAP earnings per diluted share in the range of $0.28 to $0.30 and non-GAAP earnings per diluted share in the range of $0.38 to $0.40.