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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters EBay says no changes to Skype IPO plans Thu Jul 30, 2009 8:24pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] SAN FRANCISCO (Reuters) - EBay Inc shrugged off speculation on Thursday that its planned spinoff of Skype could be in danger, given an ongoing dispute over the technology used in the online telephone unit and new plans to develop proprietary software. "Our plans to separate Skype have not changed," the company said in a statement. EBay said it would not comment beyond a regulatory filing it made on Wednesday. EBay wrote in the quarterly filing that it recognized that pending litigation over the technology behind Skype could ultimately have an "adverse result," so it had begun to develop alternative software to the technology it licenses from Joltid Ltd for Skype. The filing cast some doubt on an initial public offering or spinoff of Skype, which is scheduled for next year. Earlier this year, Skype filed a claim in the United Kingdom against Swedish company Joltid, which is controlled by Skype co-founders Niklas Zennstrom and Janus Friis. Skype sought resolution on a dispute over a software licensing agreement between the parties that Joltid was seeking to terminate. Joltid brought a counterclaim, reiterating that it holds the rights to the peer-to-peer technology and that Skype is in violation of the original agreement. The trial is expected to take place in early 2010 in the United Kingdom. In its filing, eBay acknowledged that the new software it was working on had no guarantee of success. "Skype has begun to develop alternative software to that licensed through Joltid. However, such software development may not be successful, may result in loss of functionality or customers even if successful, and will in any event be expensive," eBay said. It added that if the new software did not work or if eBay lost the right to use the original software, "the continued operation of Skype's business as currently conducted would likely not be possible." EBay announced in April that it would spin off Skype through an IPO, saying the timing would depend on market conditions. Executives acknowledged that the unit, while fast-growing, did not mesh well with eBay's core marketplaces division or its online payments system PayPal. Former Chief Executive Meg Whitman paid $2.6 billion for Skype in 2005. Shares of eBay closed up 1.2 percent to $21.66 on the Nasdaq. (Reporting by Alexandria Sage; Editing Bernard Orr) © Thomson Reuters 2009 All rights reserved Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Foxconn suicide turns spotlight on China counterfeiting also on reuters Full Coverage: Uninsured camp out for free healthcare Commentary: An abnormal recovery for housing market Former Wall Streeters take on new parenting roles More Technology News Videogame industry looks for second-half comeback iPhone vulnerable to hacker attacks: researchers Drum roll for the first robotic gamelan orchestra Yahoo gets hard look from investors following deal YouTube wedding video sends Chris Brown to charts More Technology News... Editor's Choice Slideshow A selection of our best photos from the past 24 hours. Slideshow Most Popular on Reuters Articles Video Senator asks Clinton to explain Honduran policy Pelosi lashes out against insurance companies Hollywood stars visit Cuba amid U.S.-Cuba thaw Photographer Leibovitz sued for breach of contract U.S. auto "clunker" program reaches limit WRAPUP 4-U.S. healthcare plan suffers a Senate delay Obama more bartender than mediator at beer summit | Video UPDATE 3-US auto "clunker" program limit, new funding sought Is it safe? U.S. vaccine experts want to build trust Some U.S. bank pay "unmoored" from performance: Cuomo Most Popular Articles RSS Feed Video Jackson's mother gets custody Mourners arrested at Iran memorial "Beer Summit" at the White House Northern Iraq's election impact Katherine Jackson gets full custody Arroyo in Washington 7 year-old in car chase Shot dead for enforcing smoking ban Deadly bomb hits holiday island Healthcare bill hits a snag Most Popular Videos RSS Feed Techonlogy news Web giants get together Microsoft and Yahoo have inked a 10-year Web search deal to better compete against market leader Google, but stopped short of combining their display advertising businesses. Full Article In Facebook's shadow While competing with Facebook is no easy challenge, some small social media sites appear to be finding their footing and growing at rapid rates, albeit from a very low base. Full Article NY singles go online The Big Apple has edged past Boston, Chicago, Seattle and Washington, D.C. as the best U.S. city for singles, thanks in large part to online dating. Full Article UK writes Twitter guide The British government has published a guide to help ministers understand how to use the social networking site, with the aim of extending its news and corporate messages online. Full Article eBay holds up its stars EBay will slash fees by 20 percent for its top-rated sellers and push their listings higher up in the search queue, part of steps to try to rev up its long-stagnant Marketplaces arm. 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