ebay is buying paypal

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Posted By: warshawlaw 

Today they announced a $1.5 billion stock deal.

This is really interesting news. Paypal has soured a lot of users with allegedly shoddy treatment of sellers. I won't take them for that reason. Let's see what happens.

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Posted By: scott brockelman

after the anouncement ebay stock fell several dollars, obviously investor and analysts feel the same way as pay pal users. they did not think this was a good move on ebay's part. in the present economy, 1.5 billion in cash on the ledger sheet would have a far more positive impact on investor confidence than an acquistion of a questionable company. i wish they would sustain acquistions and develop the core company. but what do i know about it, i'm on the outside looking in.

oh, by the way i own ebay stock, makes me even more cynical.

scott

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Posted By: Julie Vognar

and the first time i tried to use it to pay, the money came off my credit card immediately, but seller didn't get it for 5 days. We both agreed to wash hands of Pay Pal.

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Posted By: Brian Weisner

Hi Scott,

While I am no fan of Paypal, they do control a large portion of the fastpay internet buisness. Ebay tried to shutout paypal and force users to use there service, but that hasn't worked very well.
I wouldn't worry about the stock going down at this point, because wall street isn't happy with tech companies in general. Ebay's purchase was a longterm decision which will probably pay huge dividinds in the future, as they will control the flow of dollars on the net. Anyone trying to compete in the auction buisness will be at a very distinct disadvantage.
Hopefully Ebay management will improve the poor treatment of sellers by Paypal.
be well brian

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Posted By: scott (runscott)

Paypal has yielded far,far better results for me. Anything NOT tied to ebay is always the best bet as far as I am concerned, so this deal disappoints me.

When I had problems with Billpoint, they never even responded to emails. As a result, I no longer use them.

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Disclaimer
I apologize for the previous disclaimer, but that is in no way an admission of guilt or intention to pay reparations for mental damages that may have been suffered while reading my disclaimers.

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Posted By: Elliot

I don't want to turn this into a financial forum, but to clarify, eBay is buying Paypal with eBay shares, this transaction will not change the amount of cash that eBay has on it's balance sheet. It will only have a negative effect on eBay's share price if Paypal stock is overvalued in relation to eBay stock, if they are both overvalued the same amount, it is similiar to the story about the $10,000 cat.

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Posted By: scott (runscott)

I'm not concerned about financials, as ebay is sure to do okay as long as they focus on revenue to the exclusion of everything else - they are the only game in town as far as virtual flea markets are concerned. And although a lot of people, especially sellers, do not like Paypal, I agree that they may help ebay appear more like a real company.

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Disclaimer
I apologize for the previous disclaimer, but that is in no way an admission of guilt or intention to pay reparations for mental damages that may have been suffered while reading my disclaimers.

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Posted By: Dan Mathewson

Wall Street's daily reaction means little to nothing. Wall Street reacts whenever a stock-broker's favorite team loses the pennant. Tomorrow, the whole Dow may be up 300 ticks, who knows?

I think eBay's move was brilliant. Their businesses complement each other and many, many people use both, as I do. Of all the e-Pay options out there, my best success has been with PayPal. Of all the e-auctions out there, eBay is the most popular.

They'll probably make a fortune as a team together. (As long as Arthur Anderson isn't doing their books and Worldcom isn't their long-distance provider...)

Just my opinion, of course, they could flop by this time next year. But, I seriously doubt it. I really think this is a tremendous merger.

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Posted By: scott (runscott)

and they make ebay look like paragons of integrity

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Disclaimer
I apologize for the previous disclaimer, but that is in no way an admission of guilt or intention to pay reparations for mental damages that may have been suffered while reading my disclaimers.