eBay may use Skype money for acquisitions: CEO

May 23, 2011
EBay may use some of the $2.4 billion it will receive from the sale of its stake in Skype to make acquisitions, the chief executive of the online auction giant said in an interview published Monday.

EBay may use some of the $2.4 billion it will receive from the sale of its stake in Skype to make acquisitions, the chief executive of the online auction giant said in an interview published Monday.

EBay CEO Jack Donahoe told The Wall Street Journal that the company may also use some of the proceeds from its sale of the 30 percent stake it owns in to return money to investors through share buybacks.

"We will continue to use that balance sheet to invest in organic growth, make selectively and provide return to our shareholders with stock buybacks," Donahoe told the newspaper.

He said the San Jose, California-based company has over $8 billion in cash and was on the lookout for takeover targets.

"There is nothing imminent but when we see something that will help our mission to connect buyers and sellers (we will do it)," added Donahoe.

US software titan Microsoft announced this month that it was buying Internet voice and video leader for $8.5 billion.

Donahoe also told the Journal that would increase its focus on mobile products that allow people to shop, locate goods and compare prices with their phones.

"Our purpose is to bring consumers the best experience to find what they want, how they want and when they want it, whether it's on eBay or otherwise," Donahoe said. "A lot of eBay innovation will be around mobile.

"Soon I will be able to take a photo of your shoes and find out where I can buy them and how much they cost," he said.

Citing Eastern Europe and Russia as examples, the eBay CEO said he does not expect eBay to be present in every market.

"Many of those markets are not large enough for eBay to have a standalone presence," he said, and growth would come through cross-border sales.

Donahoe predicted Europe and Asia would represent a large share of eBay revenue over time. The United States currently accounts for around 40 percent of eBay revenue, followed by 40 percent in Europe and 20 percent in Asia.

Explore further: EU Parliament votes to break up Google

add to favorites email to friend print save as pdf

Related Stories

eBay to buy GSI Commerce for $2.4 billion

Mar 28, 2011

Online auction giant eBay announced Monday that it has agreed to acquire GSI Commerce, a provider of electronic commerce and interactive marketing services, for $29.25 a share or $2.4 billion.

EBay 4Q revenue rises, helped by holiday shoppers

Jan 19, 2011

(AP) -- EBay Inc. said Wednesday that its fourth-quarter revenue rose 5 percent, as the healthy holiday shopping season bolstered growth in its online marketplace and PayPal online payments business.

EBay settles lawsuit filed by Skype founders

Nov 06, 2009

(AP) -- EBay Inc. has settled a legal skirmish with the founders of Skype that threatened to complicate eBay's plans to sell most of the Internet phone service to a group of investors for $2 billion.

EBay 3Q profit rises 23 percent

Oct 20, 2010

(AP) -- EBay Inc. on Wednesday said its third-quarter profit climbed 23 percent, helped by its growing PayPal business.

Top eBay e-commerce executive steps down

Sep 21, 2010

(AP) -- One of eBay's top executives is stepping down, leaving a void in the e-commerce company's largest division, which includes the namesake auction website.

Recommended for you

EU Parliament votes to break up Google

Nov 27, 2014

The European Parliament voted overwhelmingly for the break-up of Google Thursday in a largely symbolic vote that nevertheless cast another blow in the four-year standoff between Brussels and the US Internet ...

Toyota finds new air bag issue, recalls more cars

Nov 27, 2014

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

Nov 26, 2014

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.