WOW!!!! ebay is buying paypal!

[AtlantaGAL]

eBay Buying PayPal in $1.5 Billion Deal

Monday July 8, 10:08 AM EDT

SAN JOSE, Calif. (Reuters) - Online auctioneer eBay Inc. (EBAY) on Monday said it would buy PayPal Inc. (PYPL), the online payment system already used by many eBay customers, in a stock swap worth $1.5 billion.

The deal takes eBay, one of the few success stories in the Internet commerce sector, a step closer to providing a full-service operation, from listing to payment processing.

"Having the leading payment processor fully integrated into the leading e-commerce site brings a great deal more value to both companies," said Legg Mason analyst Tom Underwood. "It also keeps eBay's focus on providing a more full-service offering."

EBay also reported that second-quarter earnings jumped from a year earlier on strong growth in U.S. business.

PayPal, which went public in February, already derives about 60 percent of its business from eBay, where its Web-based cash-transfer service has become the most popular method of payment, eBay said. The remaining 40 percent of PayPal's business occurs primarily among small merchants who present a potential new audience for eBay.

EBay said it would phase out its current payment service, eBay Payments by Billpoint, after the acquisition closes.

The deal values PayPal at about $23.61 per share based on eBay's closing Nasdaq stock price on Friday.

PayPal shares opened up $2.05, or 10 percent, to $22.45 and later rose to $22.74, their highest level in three weeks.

EBay shares opened down $2.55, or 4 percent, at $58 on Nasdaq. Underwood attributed the decline to arbitrage dealing that typically follows an acquisition announcement. "I don't think it's a reflection of the deal," he said.

EBay said the deal would add to its earnings, excluding one-time items, immediately after closing, which is expected late this year. But net income will suffer initially as eBay will book charges for stock-based compensation and amortization of intangible assets of about $4 million and $9 million, respectively, per quarter.

EBay said it would swap 0.39 share for each PayPal share. The $1.5 billion value of the deal includes $18 million in acquisition-related costs, according to eBay's preliminary estimates.

In conjunction with the deal's announcement, eBay released some early details of its second-quarter earnings, which were boosted by strong U.S. and international business.

The company earned $54.3 million, or 19 cents per share, in the quarter, on revenue of $266 million. Earnings excluding unusual items also totaled 19 cents per share, it said.

The company previously estimated revenues would range from $260 million to $265 million and earnings, excluding charges, would be 17 cents per share.

EBay said its results were highlighted by an accelerating U.S. transaction business, which rose 48 percent year-over-year, and year-over-year growth from international operations of 148 percent.

A year earlier, eBay earned 12 cents per share, before charges. Additional details on the year-ago earnings were not immediately available. EBay's full earnings statement will be released on July 18, it said.

[NaomiMarie]

WOW

[ShainaT]

Saw this on www.usatoday.com. Very interesting. Guess that is the end of BillPoint. (I always liked PayPal better so no problem for me.)

[AtlantaGAL]

I have always used both PayPal and Billpoint. I guess what I am wondering is if the "cash transfer" feature of PayPal will remain intact.

Billpoint is basically an eCheck/CC processing service. It doesn't have the personal account setup for FREE/NO FEE cash transfer like PayPal, and has suffered in marketshare as a result.

I will be watching this one VERY closely. Because if eBay discontinues certain PayPal features it will pave the way for a PayPal clone in the not so distant future.

[S_Breeze1]

WHAT?????OMG REALLY??????? Maybe they can get rid of the problems it has had... not gonna gossip here, but have heard a few HORROR STORIES.....(*x*)....mumble mumble mumble

[mccbridge]

WOW! I second that NaomiMarie

[tasker109]

well i hope paypal stays the same as it always has......i use it to pay bills as well as to pay for auctions....sometimes even transfer cash to people too.

[katrinka99]

Originally posted by tasker109
....sometimes even transfer cash to people too.

Could you transfer some to me, please?

Sorry.. couldn't resist!

[tasker109]

Originally posted by katrinka99


Could you transfer some to me, please?

Sorry.. couldn't resist!

whats the email address you use at paypal??

[katrinka99]

LOL You can send it to [Only registered and activated users can see links. Either login above or Register Now], thank you very much. By the way, I don't accept anything lower than $1,000

[tasker109]

Originally posted by katrinka99
LOL You can send it to [Only registered and activated users can see links. Either login above or Register Now], thank you very much. By the way, I don't accept anything lower than $1,000

You've Got Mail

[tlspiegel]

Tasker my dear friend and buddy - please send anything you have leftover and want to transfer to me @[Only registered and activated users can see links. Either login above or Register Now]

I thank you very much. I promise to spend everything wisely and also to not spend it all in one place. Thank you for your consideration in this matter,


The Unstoppable One

[mayor]

If anyone wants to financially support Dealofday.com, feel free to send donations via paypal to [Only registered and activated users can see links. Either login above or Register Now] !

Mayor

[tasker109]

Originally posted by mayor
If anyone wants to financially support Dealofday.com, feel free to send donations via paypal to [Only registered and activated users can see links. Either login above or Register Now] !

Mayor

i tried but it came back as undeliverable.........too bad..... so sad....