Subject:
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Re: eBay buys PayPal
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Newsgroups:
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lugnet.market.services
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Date:
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Mon, 8 Jul 2002 18:56:01 GMT
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Viewed:
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3766 times
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Something this article didn't mention was that eBay is also going to phase
out billpoint as part of this acquisition:
http://www.cbsnews.com/stories/2002/07/08/tech/main514432.shtml
-- Scott
In lugnet.market.services, John Radtke writes:
> Perhaps it was inevitable but hopefully it won't have nasty implications for
> payments made outside of eBay.
>
> ugh,
> John
> #388
>
> http://www.theregister.co.uk/content/23/26080.html
>
> "eBay is to buy Paypal, for $1.5bn in stock.
>
> That's sorted then, or it will be when the deal closes at the end of the
> year. PayPal conducted its IPO in February - four months ago. Surely the
> point of that exercise was not to sell up so soon? All that expense could
> have been avoided by going for the trade sale in the first place.
>
> But the capital markets are dead, and PayPal needs eBay - It became the
> world's biggest web micropayments platform on the back of an exclusive deal
> with eBay. and 60 per cent of its turnover derives from this auction
> marketplace. This ended earlier this year, and eBay hoovered up stock in
> Billpoint, a rival payments provider.
>
> eBay reckons it can save operational costs by combining the two companies -
> earnings will be immediately accretive on a pro-forma basis (i.e. with the
> merger costs stripped out). The company also becomes substantially bigger by
> gaining control of the online payment system.
>
> PayPal's Q2 turnover is expected to come in at $53-$54m, while eBay's Q2
> revenues, announced today, were $266m. GAAP net income was $54.3m on sales
> up 46 per cent on the same period last year. eBay attributes the growth to
> the accelerating pace of US transactions.
>
> eBay points to the market opportunities presented by the rest of PayPal's
> business, but post-acquisition, PayPal's non-eBay turnover may well fall.
> Its new owner intends to phase out business with gambling sites -
> 'regulatory uncertainty' is the rationale.
>
> PayPal is a tad controversial - it's got jaw-dropping Ts&Cs and it's not
> very friendly to people outside the US. Also, there are occasional foul-ups,
> and several states want much closer scrutiny - if PayPal.looks like a bank
> and it acts like a bank, then it should regulated like a bank."
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Message is in Reply To:
 | | eBay buys PayPal
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| Perhaps it was inevitable but hopefully it won't have nasty implications for payments made outside of eBay. ugh, John #388 (URL) is to buy Paypal, for $1.5bn in stock. That's sorted then, or it will be when the deal closes at the end of the year. (...) (24 years ago, 8-Jul-02, to lugnet.market.services, lugnet.general)
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