Online auctioneer eBay has announced that it will acquire Skype Technologies, for approximately $2.6 billion in cash and eBay stock.

Reportedly eBay said that subject to Skype meeting performance targets over the next 3 years, the total value of the deal could rise up to around $4.1 billion, with payment of the additional $1.5 billion being made in 2008 or 2009.

Skype's free software allows people to talk over the net for free, through microphones and computers. Although some industry analysts are sceptical about eBay's acquisition of Skype, eBay is confident that this acquisition will strengthen its global marketplace and payments platform, while opening several new lines of business.

According to Meg Whitman, chief executve, eBay, combining eBay and PayPal with Skype will facilitate the creation of an extraordinarily powerful environment for business on the Net. Niklas Zennstrom, ceo and co-founder, Skype, believes that the deal will allow Skype to revolutionize the ease with which people communicate through the net.

While Skype has 53 million registered users with over 2 million people using its service at any given point in time, San Francisco-based eBay has a community of 157 million registered users.

In a separate development the Chinese government is believed to be considering a ban on the usage of unregulated VoIP services, with Skype likely to be the main target. Interestingly, international calls made through SkypeOut cost a fraction of those made through China's mobile operators and its wireline.

In China, only 6 of the country's broadband carriers are permitted to operate VoIP. Chinese citizens are often punished for their on-line activities. In fact China Telecom's Shenzhen branch is said to have blacklisted users of SkypeOut and further intends to fine users of all VoIP services.

The long and the short of it... China and India may certainly be compared as two of the world's emerging super-powers but as regards liberty and individual rights... there is clearly no comparison!