Ebay has agreed to buy Skype, the best known of the VOIP phenomenon, for up to $4.1 billion. It will pay $1.3 billion in cash and $1.3 billion in stock for the company and all associated technology. If certain financial targets are met, Ebay will make an additional payout of up $1.5 billion.

Skype is expecting to receive revenues of $60 million this year and greater than $200 million in 2006, but the company has not yet reached profitability. Some analyst are predicting that Ebay will use its PayPal online payment systems and Skype to allow members to complete transactions via web phone calls. Others predict that Ebay will use Sky as a new marketing and distribution mechanism.

Ebay shares immediately rose 45 cents, or 1.17%, to $39.07.