This excerpt taken from the EBAY 8-K filed Dec 1, 2005.
NOTES TO UNAUDITED PRO FORMA
CONDENSED COMBINED FINANCIAL STATEMENTS (Continued)
The accompanying unaudited pro forma condensed combined financial statements have been prepared as if the acquisition was completed on September 30, 2005 for balance sheet purposes and on January 1, 2004 for statements of income purposes and reflect the following pro forma adjustments:
Certain reclassifications have been made to conform Skypes financial statement presentation to eBays financial statement presentation.
Shares used to calculate unaudited pro forma net income per basic share were computed by adding 32.8 million shares issued as a result of the transaction to eBays weighted average shares outstanding. Shares used to calculate unaudited pro forma net income per diluted share were computed by adding 32.8 million shares and approximately 1.3 million equivalent shares related to options assumed for the periods ended September 30, 2005, (using the treasury stock method) to eBays weighted average shares outstanding.