eBay buying Zong for $240 million

July 7, 2011
PayPal owner eBay said Thursday that it has agreed to buy mobile payments provider Zong for $240 million in cash.

PayPal owner eBay said Thursday that it has agreed to buy mobile payments provider Zong for $240 million in cash.

"With Zong, PayPal will have greater ability to offer consumers even more choices in how they want to pay," the San Jose, California-based said in a statement.

The acquisition of Zong will help PayPal "reach the more than four billion people who have mobile phones, giving them more choice and security when they pay," PayPal president Scott Thompson said.

"Commerce is changing," Thompson added. "With mobile phones, we walk around with a mall in our pockets."

Zong, which is based in Menlo Park, California, offers mobile payments options for digital goods and services in 21 languages and 45 countries.

"We look forward to extending our services to PayPal's more than nine million merchants around the world," Zong chief executive David Marcus said.

said it expects to transact more than $3 billion in this year with eight million customers making purchases on their mobile phones using its services.

EBay said it expects the Zong acquisition to close in the third quarter of 2011.

EBay shares were up 1.40 percent at $33.38 in early trading on Wall Street.

Explore further: EBay's PayPal envisions doubling in size by 2011

Related Stories

EBay's PayPal envisions doubling in size by 2011

March 11, 2009

(AP) -- EBay Inc.'s name may conjure images of online auctions, but the company is hoping to turn attention to its second-largest business - PayPal - which it expects to blossom significantly in the next few years.

EBay CEO envisions PayPal in more offline settings

May 12, 2010

(AP) -- The waiter asks: "Will you be paying by cash, credit or PayPal?" The man in charge of PayPal's parent company says you shouldn't be surprised to hear that question within a year.

PayPal to restrict payments to India merchants

January 29, 2011

(AP) -- PayPal is making more changes to its online payment service in India, saying it will begin restricting the size of payments to merchants in India because of new rules from the Reserve Bank of India.

eBay to buy GSI Commerce for $2.4 billion

March 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.

Recommended for you

Software turns smartphones into tools for medical research

July 27, 2015

Jody Kearns doesn't like to spend time obsessing about her Parkinson's disease. The 56-year-old dietitian from Syracuse, New York, had to give up bicycling because the disorder affected her balance. But she still works, drives ...

Where is solar power headed?

July 22, 2015

Most experts agree that to have a shot at curbing the worst impacts of climate change, we need to extricate our society from fossil fuels and ramp up our use of renewable energy.

0 comments

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.