16 thoughts on “Is eBay Ready To Make A Big Move?”

  1. …finally making the leap and taking over Craigslist?

    Their acquisitions are very hard to predict – one acquisition is about entering into the communication sector, while another acquisition is about entrenching themselves further into the online marketplace.

    It’s really hard to say what they are up to.

  2. A dividend is so unlikely as to be not worth mentioning.

    They’ve spent billions over the last few years propping up their stock — it hasn’t worked.

    A big acquisition like Yahoo is conceivable, I guess. I strongly suspect they’re going to use the dough to go after a bunch of smaller fish ranging in size from StumbleUpon to Skype.

    At some point soon they’re going to need to articulate a vision for all this and state categorically that auctions and online commerce are just one element of what they do in the future — otherwise the market will continue to punish them when they make money as an internet conglomerate (via Skype, PayPal etc.) while the auction market in the US and EU remains saturated.

  3. Could it be Facebook? Meg mentioned “Social Commerce” as the new eBay mantra at eBay Live. Facebook seems really pricey to me but may make sense for the company.

  4. I agree with Andrew, and I’d go farther with that thought. One of the frustrations of spring 2002 for those in management (i.e. not me) was not having the cash to make acquisitions. I think that eBay expects to see some cheap assets available if the market crashes. Cheap assets could be anything from companies with valuable brand names like Yahoo! to cheap data centers you’ve never heard of.

  5. Andrew, I agree with the idea of borrowing money when you don’t need it but they already had $1B available that would buy a lot of StumbleUpons. Now they can borrow up to $3B. The stock is up 3.4% as of this post so my guess is the market thinks something big is happening also. I think so also.

  6. here is the thing. Borrowing money and repurchasing stock is one way to prop up the stock pricing. Remember the CFO is from EDS, an industry where debt is used extensively to create shareholder value. Leveverage also keeps crazy LBO shops away.

  7. I think there could be some kind of deal with IAC Interactive, wherein EBAY buys TicketMaster from them.

  8. They might be looking into a play (with partners)for a Broadband Network by participating in the 700Mhz Auction. WOuld be nice to have access to and control of the Last Mile.

  9. With an extended credtit of $1 billion and a further $1 billion option then something major sounds like an under estimation to me.
    What could ebay be upto? Time will tell I suppose.I can’t help but think back to Google and the YouTube acquisition though.

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