On October 14, 2005, eBay acquired all of the outstanding securities of Skype Technologies S.A. (Skype), for a total initial consideration of approximately $2.6 billion, plus potential performance based payments of approximately $1.3 billion (based on the eurodollar exchange rate at the time of the acquisition and using an income approach to estimating the value of the earnout). The initial consideration of approximately $2.6 billion was comprised of approximately $1.3 billion in cash and 32.8 million shares of eBays common stock. For accounting purposes, the stock portion of the initial consideration was valued at approximately $1.3 billion based on the average closing price of eBay common stock surrounding the acquisition announcement date of September 12, 2005. Prepare the journal entry on eBays books to record the acquisition.

Account Titles and Explanation	Debit	Credit
(To record the investment in Skype using former GAAP)
(To record the investment in Skype using current GAAP)