eBay Extends Reach In Online Payments, Classified Ads
Tuesday, October 7, 2008
John Donahoe, the new chief executive of Ebay, sought to stamp his mark on the e-commerce company by cutting 10% of the workforce (over 1,000 staff worldwide) and making two acquisitions for $1.3bn…..It will pay almost US$1 billion for U.S. online payment company Bill Me Later, and around $390 million in cash for the operator of two Danish classifieds sites, dba.dk and bilbasen.dk. Bill Me Later is second only to PayPal, the online payment operator that eBay already owns, the company said. The two services complement one another, with Bill Me Later able to offer delayed payment or financing options to eBay customers using PayPal, it said…..PayPal’s total payment volume reached $15 billion in the third quarter, eBay President and CEO John Donahoe said in the conference call. Its payment volume will soon exceed that of eBay’s, with more than half of its transactions off eBay’s site, he said. This year, Bill Me Later’s total payment volume should reach $1 billion, the companies said in a presentation to investors. The Danish classifieds sites, one linked to newspaper Den Blå Avis and one for automobile buyers, will bring eBay an additional 186 million monthly page views, the company said. It now owns classifieds sites covering 1,000 cities in 20 countries. The two sites “give us technology we can use to improve our other classified sites,” Donahoe said. Worldwide, eBay has more classifieds traffic and three to four times more classifieds revenue than the well-known classifieds site Craigslist, he said, adding that eBay also holds a stake in Craigslist…..