Microsoft Corp.’s announcement that it has struck a deal for Skype Technologies worth US$8.5 billion is undoubtedly putting smiles on the faces of Canada Pension Plan Investment Board’s (CPPIB) investment professionals this morning, said a news report in the today’s Globe and Mail.
CPPIB is part of an investor group that bought a 65% stake in Skype from eBay for about $1.9 billion in cash in late 2009, a deal that valued Skype at $2.75 billion. EBay held onto the remaining 35% interest.
The investor group had been led by Silver Lake, a global private equity firm that specializes in technology.
CPPIB’s original investment as part of that deal was $300 million, but the breakdown of ownership stakes between the investors has changed slightly since the deal closed. The deal for Skype was one of the top five private market transactions globally in 2009.
With Microsoft acquiring Skype for $8.5 billion, it appears CPPIB is going to make about three times its original investment on behalf of Canadian pensioners.