Watching the Wheels

eBay's Donahoe Has Crow for Thanksgiving

It is also possible that for the long term, it suits Ebay to have the stock tank. If they are able to buy back all the stock to re-become a private company, they gain an additional layer of protection since there would be no need to have any announcements made in the public arena.

Going public spreads the financial risk away from the company to enable growth. Thay have never paid a dividend and are cash rich because they do not bear the costs involved in maimtaining an inventory.

They have everything to gain at this juncture by going back to private.