In Favor of an eBay LBO

Since eBay (EBAY) still hasn't made their "Big" announcement, I'm just sitting around the office thinking up stuff.

I'm looking at eBay's share price hitting a new 52 week low Tuesday and wondering why a company like KKR, or one of the other biggies, doesn't swoop in and do an LBO (Leveraged Buy Out) of eBay.

For $50 billion in borrowed money, they could buy eBay, Inc.; spin off PayPal as its own public company; sell Skype to Google (GOOG), Microsoft (MSFT) or even Baidu (BIDU) and either keep eBay's Marketplace business private or sell it to Yahoo (YHOO) or Amazon (AMZN) (my vote would be Amazon).

The company is sitting on over $4.5 billion in cash and generating over $2 billion a year in new cash. This seems like a no-brainer to me. Sure, the credit business is a little weak right now, but with eBay's balance sheet, this seems like a sweet deal.

Anyone want to lend me $50 billion?

If eBay management is not going to do this on their own, perhaps someone should do it for them.

Just my 5 cents!

Disclosure: none