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Whoa, is eBay buying PayPal?

UNCjigga

UNCjigga

Lifer


<< Apr 17 2002 : Analysts interpret the rumored acquisition of PayPal by online auction firm, eBay, as a logical move, with Morningstar.com analyst, David Kathman, stating, "it would make sense for eBay to pursue PayPal". Last year, eBay's move to file a shelf registration with the US SEC, to give it the ability to issue up to USD 1 billion worth of stock, was seen as "a prelude to possible acquisitions". If the rumors are validated, says Kathman, eBay's timing is important in that PayPal's IPO lock-up period will expire in the next few weeks, and fluctuations in the stock price of either firm could impact eBay's ability to close a suitable deal.

Speculation that a deal may be in the pipeline has been fueled by PayPal's move to issue its first public earnings a week earlier than expected, just one day before eBay reports its own results. In late February, eBay's payment of USD 43.5 million to gain full ownership of Billpoint, the payment service it launched with Wells Fargo in 1999, was interpreted as a move to compete directly with PayPal. Kathman sees Billpoint as "a mild disappointment for eBay", in that "it's not a bust by any means, but it hasn't lived up to initial expectations, largely because PayPal has become so dominant in that space".

Neither eBay, nor PayPal, commented on the rumors, which derive from broadcast reports on financial cable TV station, CNBC, but an eBay representative said the firm is happy with the current adoption rates of Billpoint. eBay does not disclose the exact number of people who use Billpoint to pay for items on its site, but the proportion is believed to be in the region of 25 to 30 per cent of its total payments volume.
 >>



Linky
 
Seriously, who uses billpoint? I've only used it once because some guy on ebay paid me with it, and that was because I missed that one little check box out of the million that you have to uncheck when you post stuff on ebay. A PITA is what it was.
 
Whoaaaa. Paypal is the ultimate nightmare of a financial problem, but if this is true grabbing some shares now could be a huge gain down the road. Wouldn't be too pissed if they went tits up though, as you know what the risk is 🙂
 


<< Whoaaaa. Paypal is the ultimate nightmare of a financial problem, but if this is true grabbing some shares now could be a huge gain down the road. Wouldn't be too pissed if they went tits up though, as you know what the risk is 🙂 >>



As I mentioned in a previous thread, you should have gotten in when Paypal went IPO. You would have doubled your money in 1.5 months as it's at ~26 right now. If Ebay buys them out...whoosh...

I wouldn't buy any PYPL stock right now though until they release their earnings statement.
 


<< I wouldn't buy any PYPL stock right now though until they release their earnings statement. >>



By then, it's too late. The market has already factored that information anyway. Unless the statement is a HUGE surprise, it's more likely then not that the stock will actually drop when the financials are released.

Russ, NCNE

 


<<

<< I wouldn't buy any PYPL stock right now though until they release their earnings statement. >>



By then, it's too late. The market has already factored that information anyway. Unless the statement is a HUGE surprise, it's more likely then not that the stock will actually drop when the financials are released.

Russ, NCNE >>



umm...right. That's why I wouldn't buy any PYPL stock right now until they release their earnings statement and the stock drops a little....

buy low, sell high right? Or do I have the backward?😉
 


<< Maybe Paypal won't blow so much anymore and I can open an account with them again. >>



Ebay is suck, everything they touch turns to crap...you could say they are the Anti-Midas.
 
some points..



1. paypal supposedly will pull a profit this quarter

2. ebay buying them would be bad for us. they already have a monopoly on auctions. hence the fact they can raise fees whenever they feel like which is what they'd done twice in the last year and a half. fees are 2.75% now, used to be 2.25 . if they have a monopoly on online billpayment i'm sure that paypal's credit card fees would go up. so basically this is all bad.
 


<< Unless the statement is a HUGE surprise, it's more likely then not that the stock will actually drop when the financials are released. >>


In that case, short sell and make Paypal's stock dip work to your advantage. 😛

I'm probably in agreement with most people that a Paypal buyout would be dismal for P2P payment consumers, simply because of less competition. Then again, eBay's one of the few dotcoms that's actually turned profit, stayed afloat, and retained a decent chunk of stock value since inception. So I don't know, even after the financials either one could swing either way. My non-trading $0.02.
 
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