eBay to Acquire Shopping.com for Over $600m
In its’ largest acquisition for more than 2 years, eBay, the world’s largest internet auction site, has agreed to purchase the comparison-shopping site - Shopping.com - for around $620 million.
In a recent press release, the companies announced that eBay will pay $21 per share, which represents a 20 percent premium over current price, for Shopping .com and which is expected to reduce eBay’s earnings per share in 2005.
eBay’s growth has been slowing in recent months and the acquisition is a strategic move to open new channels for the company by integrating Shopping.com’s services that allow online shoppers to compare prices and features on products from multiple retailers which are not currently represented on eBay auction sites.
When the integration is completed, listing on Shopping.com should prove very attractive to eBay sellers offering items at fixed prices (Buy it Now), although it is unclear what benefits will accrue for eBay Shops and sellers using the traditional auction format, since more competition will be introduced through Shoppoing.com’s comparison services.
Whatever the detailed outcome of the acquisition and services integration, eBay seems intent on maximising growth and that should mean more and better bargains for local consumers at eBay auctions and shopping in the UK.
In a recent press release, the companies announced that eBay will pay $21 per share, which represents a 20 percent premium over current price, for Shopping .com and which is expected to reduce eBay’s earnings per share in 2005.
eBay’s growth has been slowing in recent months and the acquisition is a strategic move to open new channels for the company by integrating Shopping.com’s services that allow online shoppers to compare prices and features on products from multiple retailers which are not currently represented on eBay auction sites.
When the integration is completed, listing on Shopping.com should prove very attractive to eBay sellers offering items at fixed prices (Buy it Now), although it is unclear what benefits will accrue for eBay Shops and sellers using the traditional auction format, since more competition will be introduced through Shoppoing.com’s comparison services.
Whatever the detailed outcome of the acquisition and services integration, eBay seems intent on maximising growth and that should mean more and better bargains for local consumers at eBay auctions and shopping in the UK.
