eBay is in talks to purchase Internet-telephony company Skype Technologies SA for $2 billion to $3 billion, according to the Wall Street Journal.

The New York Post said eBay offered roughly $5 billion for Skype, and that according to a source, "Skype has been in exclusive negotiations with eBay for some time, but the agreement expires in the next few days."

In the meantime, Skype announced Monday it will establish a joint venture with Tom Online "to further cement their strategic partnership in China's rapidly growing online communication market," a market eBay has said is very important to their growth going forward (http://www.skype.com/company/news/2005/skype_jointventure.html).

Skype allows broadband Internet users to make free phone calls that can reach any other Skype user. The company said it has 53 million users worldwide.

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Wall Street Journal article
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