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eBay leads $133.7M round in Indian site, tells Icahn to "stick to the facts"

  • A year after leading a $50M investment round in leading Indian e-commerce marketplace Snapdeal, eBay (EBAY +2%) has led a $133.7M round. Re/code reports eBay "contributed a large majority of the total investment."
  • eBay Marketplaces chief Devin Wenig recently stated eBay might fully acquire Snapdeal down the road, while cautioning no decision has been made.
  • Snapdeal, which competes against Amazon and local rival Flipkart (as well as eBay's Indian site), expects to handle $1B worth of gross sales this year. The company estimates its average transaction cut is in the low-teens.
  • Separately, eBay has responded to Carl Icahn's latest letter with some fighting words of its own, and an aggressive defense of the company and director/VC Marc Andreessen's handling of the Skype sale.
  • eBay: "Carl Icahn doesnt let the truth get in the way of a good story. And while his letters and media interviews may be entertaining, they are not factually accurate ... We challenge Mr. Icahn to end his own charade with our shareholders."
Comments (10)
  • buyzjewelry
    , contributor
    Comments (25) | Send Message
     
    A good defense is an over zealous offense, Count Von Donahoe.
    26 Feb 2014, 03:44 PM Reply Like
  • Seeker137
    , contributor
    Comments (346) | Send Message
     
    The corporate top brass clowns at eBay have been running a "smoke and mirrors" charade for stock analysts and media since Donahoe took over as CEO in 2008. If all of the "truth" about their shenanigans came to light, the midnight flights to the Cayman Islands (or further) would be booked solid.
    26 Feb 2014, 04:41 PM Reply Like
  • Fabeetz
    , contributor
    Comments (5) | Send Message
     
    The only truth one can grasp in the market place is that none may be found.
    26 Feb 2014, 05:33 PM Reply Like
  • freed0m
    , contributor
    Comments (977) | Send Message
     
    Maybe EBay can show the world the minutes that Marc Andreessen defended the future worth of Skype against the rest of the board before Skype was sold to Silver Lake led private equity consortium including Marc Andreessen's private company.
    27 Feb 2014, 04:15 AM Reply Like
  • Seeker137
    , contributor
    Comments (346) | Send Message
     
    The amoral "law unto itself" entity that ebay has become can be traced back to John Donahoe becoming CEO around early 2008 and the introduction of the DSRs and a number of other egregious policies: PayPal holds of whatever length, seller limitations, forcing sellers to only take PayPal (or at least not allowing them to announce that they can and will accept money orders), the fee hikes of course, Guardrail or Quick Decline and trending. All of this has combined (by design) to create a hostile environment of fear and distrust for small sellers at ebay. All of it combines to drive small sellers off through restrictions and suspensions or because they wake up to what is going on and leave by choice. Because of the nature of predatory capitalism, ebay survives and thrives because up to this point in time, there do not appear to have been outside mechanisms (SEC, FTC, Attorney General's offices, Senators, Congressmen) reacting to the illegalities being perpetrated by ebay. A good investigative report by some major television network may be needed to really get the ball rolling in terms of exposing ebay publically and getting a real investigation into by authorities capable of doing something about it. Perhaps a House/Senate Committee Investigation of ebay (televised of course) along the lines of the Watergate Hearings. If scores of sellers who have suffered unjustly from ebay could testify before government officials UNDER OATH factually and truthfully this would be DAMNING to ebay. The further grilling of ebay top brass as they attempt to justify their egregious actions would be the icing on the cake. I urge anyone reading this to write to your Congressman or Senator in Washington DC (you can Google contact info), state your case accurately, and request an investigation into ebay. Snail mail still works better for OFFICIAL matters, but don't hesitate to email or call their 800 numbers as well.
    27 Feb 2014, 10:09 AM Reply Like
  • CARLVP
    , contributor
    Comments (24) | Send Message
     
    This is great news for eBay not PayPal just reaffirms each company can be successful in own right. That is no reason to keep the shackles on PayPal instead of cutting it loose to prosper and reward the stock holders.
    1 Mar 2014, 10:51 AM Reply Like
  • Seeker137
    , contributor
    Comments (346) | Send Message
     
    When eBay shows FAVORTISM to big retailer seller accounts, over small to mid-size seller accounts it is: UNFAIR COMPETITION. When eBay scrubs big retailers DSR / Feedback and deletes low DSR scores and Negative feedbacks in order to help large retailers sell their goods, instead of your goods, by LOWERING your search standings or NOT posting your items on eBay, that is PRICE FIXING. eBay is committing FRAUD and is interfering with your business. This is known as: Tortious Interference.
    2 Mar 2014, 11:56 AM Reply Like
  • buyzjewelry
    , contributor
    Comments (25) | Send Message
     
    How about internet neutrality for their selling accounts? Is no one paying attention or are they exempt from this law?
    3 Mar 2014, 09:40 AM Reply Like
  • Seeker137
    , contributor
    Comments (346) | Send Message
     
    @buyzjewelry the stock market quarterly report is all about image branding and perceived value. Having Wall Mart and Toys R Us selling on eBay is good for their stock price. There ARE sellers who sell retail CDs, DVDs and toys and compete with big box retailers and eBay does not want pages filled with merchandise that competes with the favored "big box" retailers. John Donahoe has shown he regrets having to have ANY small to mid-size sellers selling on eBay. He'd prefer they ALL go away and has put into place policies and mechanisms to insure that as he transforms eBay over to "bog box". But eBay needs the monthly fee revenue and the % of sales and % of shipping for their balance sheet / quarterly reports. eBay's internal policy, which employees have revealed is a revolving door / turnstyle type methodology which relies on our bad economy ( which eBay's criminal activities contribute to ) to insure new consumers to come on to eBay and attempt to sell. eBay relies on monthly sellers fees ( which are often more expensive then a brick & mortar store ) and their extortive % of our shipping fees to drive in revenue. eBay relies on new sellers coming through their door, to increase listings ( for Wall St. ) and drive in listing fees before these new sellers hit their learning curve, understand that they are being ripped off and voluntarily leave eBay. And if these new sellers don't leave, eBay eventually purges them via the DSR system, Guardrail and trending. They encourage new sellers to post by presenting fraudulent seller sales limits that can not be reached in order to increase fees. Sellers post up thousands of items that pass and eBay makes money from those postings regardless.
    4 Mar 2014, 09:55 AM Reply Like
  • buyzjewelry
    , contributor
    Comments (25) | Send Message
     
    I still concede that their reputation will eventually reach even the trailer park boys and that eBay would fall flat on its face if not for Pay Pal. Unfortunately, as Pay Pal competitors arise, JD will be planning his escape to a distant island. It is just a matter of when and it is astounding how many do not get this at a fundamental level as you are doing. (Seeker137) I thought about this stock at 52, but just could not mistrust my instincts. I do not know enough about the timeline for apple, amazon, etc. I am very impressed with the veracity that you and Icahn have displayed while unveiling eBay's underbelly. I guess I will hold onto my gold a bit longer.
    5 Mar 2014, 10:03 AM Reply Like
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