Seeking Alpha

eBay roundup: Debt, PayPal, same-day delivery

  • eBay (EBAY -0.1%) is open to taking on more debt as long as doing so doesn't affect its credit rating, says CEO John Donahoe. The remarks come after eBay, which has only $3B in U.S. cash, added $5B to its buyback authorization.
  • Altogether, eBay had $14B in cash/investments at the end of 2013, and $13.4B in debt.
  • Donahoe reiterates his opposition to Carl Icahn's call to spin off PayPal, but suggests he could eventually change his mind. "If and when synergies run their course we will be rational in the same way we were rational with Skype."
  • For his part, PayPal co-founder/Tesla CEO Elon Musk has told Forbes (in a cover story about PayPal) he backs a PayPal split. "It doesn’t make sense that a global payment system is a subsidiary of an auction website. It’s as if Target owned Visa or something."
  • Forbes' story highlights the culture clash between PayPal and eBay, as PayPal chief David Marcus tries to make the payments giant more agile and mobile-focused. Marcus: "It’s a 13,000-person company where we’re changing everything and rewiring the whole culture … At large companies you always find someone with reasons not to do something."
  • Meanwhile, Donahoe tries to tone down expectations for eBay's Now same-day delivery service (relies on retail partners). "This is not a major independent business line we want to grow." Amazon (AMZN +2.1%) might be happy to hear those remarks.
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Comments (2)
  • Chris DeMuth Jr.
    , contributor
    Comments (5718) | Send Message
     
    EBAY could benefit from activist attention. Here are some others that could, too: http://bit.ly/MJggCW
    13 Feb 2014, 03:44 PM Reply Like
  • Seeker137
    , contributor
    Comments (369) | Send Message
     
    Chris, there's a new Facebook group, Former Ebay Sellers which is doing exactly that. Several people have contacted attorneys, sent letters to their Governors and Senators, etc. about eBay's egregious actions which are too numerous to detail here. Visit: http://on.fb.me/Jktyo4
    13 Feb 2014, 10:15 PM Reply Like
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