REFILE-UPDATE 2-EBay planning spin-off of Skype through IPO

(Refiles to fix typographical error in headline) (Recasts; adds spin-off details, background, byline)

* Skype IPO expected by first half of 2010

* EBay shares rise 4 percent

By Alexandria Sage

SAN FRANCISCO, April 14 (Reuters) - EBay Inc (EBAY.O) said on Tuesday it would spin off its Skype Web telephone services unit through an initial public offering, cheering investors who had prodded the online giant to unload the fast-growing, low-revenue business and return cash to shareholders.

Share of eBay rose 4 percent after hours.

The move by eBay -- which has given up trying to integrate Skype into its main marketplaces business -- could also seen as placing a 'for sale' sign on the unit to fetch offers from potential buyers.

San Jose-based eBay, which acquired Skype in 2005 for $2.6 billion, has signaled it would be ready to unload the division for the right price. Recent media reports said the business' co-founders were seeking to bid on the company, and shareholders have pushed for a sale or spin-off.

"We believe operating Skype as a stand-alone publicly traded company is the best path for maximizing its potential," eBay Chief Executive John Donahoe said in a statement, adding there were few synergies with the larger company.