Ebay buying Paypal

good article. ebay and paypal keeping it on the hush hush. i never liked ebays billpoint anyway. I use paypal alot. hx for the info

 

Cut and Paste from elsewhere:

"Big news today was out from several companies mentioned in last weekâ??s column, including eBayâ??s acquisition of PayPal, and InfoSpace reiterating financial guidance.


eBay Conquers PayPal

In a deal today valued at $1.5 billion, premier on-line auction company eBay (NASDAQ: EBAY) purchased newly public on-line payment leader PayPal (NASDAQ: PYPL).

Last week Bill Martin reported in his Growth Report column, â??I believe international growth and PayPalâ??s expansion into more multi-purpose payment processing will keep the PayPal growth engine firing on all cylinders.â? Subscribers who took advantage of the price decline of PayPal shares, as suggested in last weeks article, saw stellar returns today when shares posted gains of as much as 18%.

Under terms of the deal, eBay will issue 0.39 eBay shares for each share of PayPal based on Fridayâ??s closing stock prices, translating to a $23.61 buyout price per PayPal share. In active trading Monday, eBay shares closed down $3.76 while PayPal rose $1.61 or 8% percent to $21.61.

We are excited about the opportunity for the combined eBay / PayPal and believe this new entity will truly dominate the on-line transaction sector as well as the on-line auction business. From eBayâ??s point of view, the transaction makes abundant sense in that 40% of eBay transactions are settled through electronic funds transfer, and of these the vast majority are handled by PayPal.

One factor that may have been a driving force from PayPalâ??s point of view was eBayâ??s continued focus on on-line payments through its â??eBay Paymentsâ?, a partnership between eBay and Wells Fargo Bank that eBay recently bought out and took control of. PayPal shares cratered on this news with the Street fearing eBayâ??s dominance in the on-line auction arena could translate to domination in the settling of those transactions, ultimately leading to a huge revenue decline for PayPal, which does approximately 60% of its transaction volume through eBay.

The decline of PayPal shares from the $30-level (late May) to the $19 - $20 range allows eBay the opportunity to purchase the transaction leader for a reasonable $1.5 billion in a stock transaction. The acquisition will not only give eBay revenues from transactions through eBayâ??s own auctions, but will also allow the company access to the other 40% of PayPalâ??s business which is derived through other smaller auction sites and individual merchants."

-Cliff

 

I hate Paypal. If you don't abide by their TOS to the LETTER, and whatever ammendments they think up on the fly and don't publish, you're setting yourself up for a headache... to the tune of $2000 for me. Completely wrecked a checking account. Stay away. I have other reasons though... like their complete lack of security. Hacked paypal accounts will run you about $50, and are just as available as snickers bars. I wouldn't do it....