Online auction giant eBay plans to buy internet phone service provider Skype Technologies for at least $2.6 billion.
Under the deal, eBay will pay $1.3 billion in cash and $1.3 billion in shares, plus as much as $1.5 billion based on future performance.
Skype, based in Luxembourg, is expected to add $60m of revenue in 2005 and more than $200m in 2006, eBay estimates.
Founded in 2002, Skype is among the leaders in internet telephony, allowing users with an internet connection to make free or low-cost calls. Skype has 54 million subscribers in 225 countries and territories. EBay also says Skype is adding 150,000 users daily.
Skype's founders, Niklas Zennstrom and Janus Friis, will remain with the company.
EBay said in a statement that the acquisition, widely speculated upon last week, would strengthen its global marketplace and payments platform, while opening several new lines of business.
