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Ebay buys PayPal

CmdrTaco posted more than 12 years ago | from the i-think-ebaby.com-should-sell-children dept.

News 181

mdahlman was among several readers who submitted the story that eBay has bought Paypal in a deal worth $1.5B in stock. The article is mostly numbers and money related stuff, but it also briefly mentions some of the controversy surrounding eBay.

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First post (-1, Offtopic)

Anonymous Coward | more than 12 years ago | (#3841039)

I 0wnz j00

Re:First post (-1)

News For Turds (580751) | more than 12 years ago | (#3841043)

j00 did 0wn3Z. Now CLIT 0wn3Z. Bite me.

Re:First post (-1, Offtopic)

Anonymous Coward | more than 12 years ago | (#3841059)

damn so close!

In this case.... (3, Interesting)

stevenbee (227371) | more than 12 years ago | (#3841050)

Consolidation might not be a bad idea. Particularly since the excellent escrow service Tradenable went belly-up,
I have noticed the one sketchy part about the whole Ebay experience has be the payment path. Perhaps now it
will be better integrated.

Yeah, I agree... BUT... (2, Informative)

eyegor (148503) | more than 12 years ago | (#3841870)

Having something like bidpay or paypal better integrated into E-bay would be nice, but Paypal needs to REALLY clean up their act. I use them when I can, but they won't let you have full access unless you "validate" yourself by giving them your checking account information. Which is SO NOT going to happen.

They already have my credit card info and that should be enough. My losses are limited if some bozo breaks into my Paypal account and pays for something with my credit card.

If they have my checking account info, they could potentially wipe me out and I have little to no recourse at that point.

Smart Move for Ebay, bad for paypal people. (2, Interesting)

nervlord1 (529523) | more than 12 years ago | (#3841051)

Who else can see paypal becoming a "have money sent to you, but only be allowed to be spent on ebay" type of service?

I get my pay from germany with paypal, if they change it to you can only use your paypal money to pay for ebay stuff, ebay will gain, but we will all be stuffed.

Is it really that unrealistic?

Re:Smart Move for Ebay, bad for paypal people. (0)

Anonymous Coward | more than 12 years ago | (#3841083)

No, that's not going to happen. The ridiculous number of ebay-only traders would have no way to take money out of the system for their own living/profit.

Re:Smart Move for Ebay, bad for paypal people. (5, Insightful)

Washizu (220337) | more than 12 years ago | (#3841095)

Who else can see paypal becoming a "have money sent to you, but only be allowed to be spent on ebay" type of service?

I do not. If paypal becomes the universal standard for person to person financial transactions online, they stand to make much more money than if they only sold "ebay bucks."

Re:Smart Move for Ebay, bad for paypal people. (0)

Cepper (235111) | more than 12 years ago | (#3841172)

Very true. This deal could make E-bay a financial powerhouse.

Re:Smart Move for Ebay, bad for paypal people. (-1)

News For Turds (580751) | more than 12 years ago | (#3841224)

Why don't you just reply with "I Agree With This Post" in the subject line? It would be a lot easier.

Re:Smart Move for Ebay, bad for paypal people. (2)

jafuser (112236) | more than 12 years ago | (#3841505)

I've been wondering why PayPal hasn't taken the leadership role in online micropayments. I suppose some websites have dontation boxes where you can toss them 25 cents or a dollar, where that almost works like micropayments, but I'd really like to see someone start to use micropayments to keep some sites alive.

Re:Smart Move for Ebay, bad for paypal people. (1)

dejaffa (12279) | more than 12 years ago | (#3841100)

Exactly. What about the other merchants who accept PayPal?

My wife's online business, for example, accepts PayPal for people who don't have credit cards (they can do an EFT from a checking acct to PayPal, and PayPal EFT's to her). If this is no longer an attractive option, she's going to have to go to "credit cards only, or mail us a money order."

For us, this is A Bad Thing(tm).

Dejaffa
dbrowne at sewingcentral . com

Re:Smart Move for Ebay, bad for paypal people. (0)

Anonymous Coward | more than 12 years ago | (#3841489)

They're not stupid. They know they can't grow if they only accept ebay.

Re:Smart Move for Ebay, bad for paypal people. (0)

Anonymous Coward | more than 12 years ago | (#3841102)

Who else can see paypal becoming a "have money sent to you, but only be allowed to be spent on ebay" type of service?

This would totally kill a bunch of the sales on eBay. If you can't get the money out for the stuff you've sold, you can't buy more stuff to sell on eBay. Not everything on eBay comes out of someone's attic or garage.

If they did that, I'm sure that people would stop accepting paypal payments within months.

Re:Smart Move for Ebay, bad for paypal people. (2)

Jucius Maximus (229128) | more than 12 years ago | (#3841271)

"I get my pay from germany with paypal, if they change it to you can only use your paypal money to pay for ebay stuff, ebay will gain, but we will all be stuffed."

If they did pull something like this, it would obviously annoy a lot of people. In that case, I would expect another 'replacement service' from another company to spring up with a different name but similar functionality, and perhaps fewer problems [paypalwarning.com] *.

*Note to reader: I have heard your story about how PayPalWarning.com is crap and you have used PayPal without problems for $thousands of transactions. Don't reiterate, please.

Re:Smart Move for Ebay, bad for paypal people. (4, Funny)

mshiltonj (220311) | more than 12 years ago | (#3841760)

"I get my pay from germany with paypal, if they change it to you can only use your paypal money to pay for ebay stuff, ebay will gain, but we will all be stuffed."
If they did pull something like this, it would obviously annoy a lot of people. In that case, I would expect another 'replacement service' from another company to spring up with a different name but similar functionality, and perhaps fewer problems*.

This has already happened. Richard Stallman, shortly after the story broke, announced the creation of GnuPal [gnu.org] , citing the need for an free (free to use, anyway) payment system. It will be deployed using the DotGNU [gnu.org] web services platform.

Re:Smart Move for Ebay, bad for paypal people. (1)

Jucius Maximus (229128) | more than 12 years ago | (#3841890)

"This has already happened. Richard Stallman, shortly after the story broke, announced the creation of GnuPal, citing the need for an free (free to use, anyway) payment system. It will be deployed using the DotGNU web services platform."

Thank you for this information!! I hope the service becomes mainstream.

Re:Smart Move for Ebay, bad for paypal people. (1)

FiendBeast (461063) | more than 12 years ago | (#3841880)

There already are other similar services, my favourite being nochex.com - its UK based but I imagine that Americans can still use it.

The big benefit for me is that they accept Switch and Solo cards which are very common in the UK but have very poor support outside (for instance, I don't think Paypal support them - its Visa or Mastercard only there). Also you can get a Solo card from the age of 16 whereas I'm pretty sure that you have to be 18 to get something which can be used on paypal.

Re:Smart Move for Ebay, bad for paypal people. (2)

ocbwilg (259828) | more than 12 years ago | (#3841852)

Who else can see paypal becoming a "have money sent to you, but only be allowed to be spent on ebay" type of service?

It'll never happen. The whole point of selling something on Ebay is to trade something that you have no use for to get money in return. If you can't get your money out of the system then you either won't sell your items on Ebay or you will use a different payment system (like money order). This will hurt Ebay, so it makes no sense for them to change it.

What I can see happening is having Billpoint and Paypal merged into the leading online micropayment solution. I can see Ebay integrating Billpoint/Paypal more thoroughly into the "Ebay experience". You'll probably see more Ebay merchants accepting these payment systems, and with any luck you might actually see Ebay branch out into escrow services for merchants and customers (since Ebay runs the risk of being caught holding the bag in instances of fraud).

Maybe..... (5, Funny)

Lord_Slepnir (585350) | more than 12 years ago | (#3841054)

Maybe they're just tring to set a record for the largest sale on their own auction site. You too could own paypal. Bids start at 1 billion, 2 billion dollar reserve.

Re:Maybe..... (0, Informative)

Anonymous Coward | more than 12 years ago | (#3841154)

trying.

Quite right (0, Informative)

Anonymous Coward | more than 12 years ago | (#3841256)

Tring are an obscure, now defunct, model railway manufacturer. They did a lot of (Now also defunct) 3mm (TT) scale stuff.

This has been your daily Slashdot dose of Completely Obscure Useless Crap. Thank you.

Re:Maybe..... (0, Informative)

Anonymous Coward | more than 12 years ago | (#3841416)

s/tring/trying/
s/paypal/PayPal/
s/billion,/billion;/
s/Major/major/
s/spelling$/spelling./

Re:Maybe..... (0, Informative)

Anonymous Coward | more than 12 years ago | (#3841878)

From your sig: Note: I'm a Computer Engineer. I'm not an English Major. Do not reply just to critique my spelling

You left the period off the end of that third sentence.

The real question is... (1, Funny)

after5 (451598) | more than 12 years ago | (#3841060)

Did they pay using Paypal?

Yeah... (2)

artemis67 (93453) | more than 12 years ago | (#3841177)

they would have bought them 6 months ago, but PayPal had frozen eBay's account.

Re:The real question is... (2)

MattRog (527508) | more than 12 years ago | (#3841195)

If they did, who keeps the transaction fee? :D

Great Now Paypal will be as useless as EBAY PAY (0)

as400as2 (560825) | more than 12 years ago | (#3841063)

Ebay Payment is substandard. I hope this doesnt effect the new paypal.

Re:Great Now Paypal will be as useless as EBAY PAY (3, Interesting)

tshoppa (513863) | more than 12 years ago | (#3841273)

Ebay Payment is substandard.

I disagree. For Ebay payments buyers you don't have to go through the Paypal "registration" process (where they try to persuade you to upgrade to Premier where they get your bank account information), and for Ebay payment sellers you get deposit straight to your bank account without sitting around in a namby-pamby "paypal" account first.

Both systems did have strong discouraging factors for non-US buyers, but things have gotten better for both sides in the past couple of years.

Ebay payments did always have a larger seller fee than Paypal, though.

I thought the Amazon "Zshops" system was pretty cool for both buyers and sellers. The nice thing about it is that it worked for non-auction sales *and* it didn't require an extensive registration process like Paypal. But it appears to have never really become popular with users.

if you can't beat them, buy them (1, Insightful)

Anonymous Coward | more than 12 years ago | (#3841065)

eBay had long had the "Billpoint" payment option, but very few people used it--instead, PayPal became very popular. Although it wasn't as easy to set up as Billpoint, it didn't have any silly fees (at least not from when it began) and just worked better.

So I find it funny that this happens now :)

Re:if you can't beat them, buy them (0)

Anonymous Coward | more than 12 years ago | (#3841240)

I'd rather pay through Billpoint than have my bank accounts at the mercy of the crappy PayPal service.

controversy (1, Insightful)

AlgUSF (238240) | more than 12 years ago | (#3841067)

Controversy over eBay? How about the controversy over Pay Pal (the Gestapo of the 21st century).

Re:controversy (0)

Anonymous Coward | more than 12 years ago | (#3841094)

read the article.

it does address paypal.

Re:controversy (2, Informative)

larry bagina (561269) | more than 12 years ago | (#3841105)

from the article:

PayPal is a tad controversial - it's got jaw-dropping Ts&Cs and it's not very friendly to people outside the US. Also, there are occasional foul-ups, and several states want much closer scrutiny - if PayPal.looks like a bank and it acts like a bank, then it should regulated like a bank.

In fact, the article doesn't mention any ebay controversy. Expect this comment to be modded down and the story silently edited...

Re:controversy (1)

AlgUSF (238240) | more than 12 years ago | (#3841213)

That was the point I was trying to get at, is that PayPal is much more controversial than eBay. I guess the submitter should have RTFA. :-)

VERY smart move by ebay... (-1)

Anonymous Coward | more than 12 years ago | (#3841074)

I bet 90% of their auctions are settled through paypal.

Well.. (1)

iONiUM (530420) | more than 12 years ago | (#3841086)

It was only a matter of time before this happened. PayPal was being used in a lot of places, but most people I know started off using it for Ebay. So why not take it..
Wouldn't surprise me if we see "EBay Passport" not too far in the future, or some service along those lines...

Re:Well.. (1, Funny)

Anonymous Coward | more than 12 years ago | (#3841190)

"EBay Passport"? What about PayPalladium?

How did they purchase them? (0, Redundant)

ShwAsasin (120187) | more than 12 years ago | (#3841091)

I wonder how they purchased PayPal? Via PayPal? Is that even possible? or did PayPal put the company up on EBay and auction it off with little floofy homebrew pictures?

Ts&Cs? (0)

Anonymous Coward | more than 12 years ago | (#3841096)

what are those?

Re:Ts&Cs? (0)

Anonymous Coward | more than 12 years ago | (#3841135)

what are those?

Terms and Cervices

Re:Ts&Cs? (2, Interesting)

Tranvisor (250175) | more than 12 years ago | (#3841299)

Terms and Conditions,

Paypal's are pretty draconian.

"All your money is belong to US!"

Whats the new name? (0)

LinkDJ (163960) | more than 12 years ago | (#3841104)

Are they going to call it ePal or PayBay?

Linux users not welcome in French town (-1, Offtopic)

Anonymous Coward | more than 12 years ago | (#3841108)

The town of La Grand-Motte in southern France passed a new law requiring Linux users to vacate the town [ananova.com] .

Eh (0, Redundant)

JohnHegarty (453016) | more than 12 years ago | (#3841109)

"in a deal worth $1.5B in stock"

And they couldn't evan play though paypal...hmmm..

Do I hear 1.5 billion? Going once, twice... (4, Funny)

Ilan Volow (539597) | more than 12 years ago | (#3841118)

Ebay took the "Buy now" option. I'd have always figured they would have opted for a fierce bidding war with billg@microsoft.com. Assuming Paypal is guaranteed against DOA, the sellers of Paypal should get positive feedback.

in other news... (0)

Anonymous Coward | more than 12 years ago | (#3841126)

Microsoft successfully bids for the combined eBay/PayPal corporation, purchasing both companies in a single fell swoop.

The new combined entity is purported to be entitled: "MeBayPal" (NASDAQ: MEAL) and will be integrating Microsoft Wallet into their next generation "secure" order and purchasing system.

Re:in other news... (0)

Anonymous Coward | more than 12 years ago | (#3841151)

to be entitled: "MeBayPal" (NASDAQ: MEAL)

More commonly known as "Microsoft's Money" (NASDAQ: AYBABTU)

;)

Better call the FBI (5, Funny)

fritter (27792) | more than 12 years ago | (#3841133)

It turns out they just fell for some Finnish guy's scam (never send $1.5B of stock to a P.O. box!). He claimed he was selling PayPal "for a friend", but oddly became angry upon suggestion of sending it C.O.D. Unfortunately, due to their toothless fraud protection policies, it looks like they're just gonna have to suck it up and take the loss.

Better luck next time, eBay! They probably should have bought PayPal through an escrow service...

Controversy surrounding ebay? (1)

corian (34925) | more than 12 years ago | (#3841134)


Maybe I'm reading some other article at the given link, but I don't see any mention of controversy surrounding ebay.

MODERATE DOWN (0)

Anonymous Coward | more than 12 years ago | (#3841188)

The parent post is suggesting that CmdrTaco is incompetent. Jaime, please set his karma to -1.

here's what I"m worried about (0)

Anonymous Coward | more than 12 years ago | (#3841138)

Ebay owns paypal. Paypals database of user information, which is very sensitive information, is now property of ebay. I trust ebay even less that I trust paypal. Time to delete that paypal account! Who knows what kinds of changes to the TOS, Privacy Policy, etc. will be made in secret.

Insurance (1)

NASAKnight (588155) | more than 12 years ago | (#3841147)

Does this mean when I make a claim on my E-bay insurance I work through paypal? :-)

What's ebay's interest? (4, Interesting)

stere0 (526823) | more than 12 years ago | (#3841152)

Ebay's business model is almost perfect: no warehouse, few employees with average qualifications, buildings can be in the middle of nowhere, no suppliers, no stocks, customers take care of themselves. Paypal, on the other hand, requires more customer care - I could be wrong on that but I suppose it does.

I'm going to play silly here. What do they really gain? Is Paypal that profitable or are they just going to push Paypal users towards spending their dollars on ebay?

Re:What's ebay's interest? (2, Insightful)

MrP- (45616) | more than 12 years ago | (#3841176)

"Paypal, on the other hand, requires more customer care"

Tell that to the previous owners!

Re:What's ebay's interest? (0)

Anonymous Coward | more than 12 years ago | (#3841314)

Actually, Paypal *outsources* its customer service to a company named Teletech--so Ebay has nothing to worry about.

I know this because I used to work at Teletech.

Re:What's ebay's interest? (1)

wscott (20864) | more than 12 years ago | (#3841973)

...few employees with average qualifications...

Show me a "few employees with average qualifications" that can keep a server farm running under the load the ebay normally sees.

Slashdot Wagering Board Update: @# +1 ; Innovative (-1, Offtopic)

Anonymous Coward | more than 12 years ago | (#3841157)

Slashdot Out Of Busines By Dec. 2002 3-1

Dick Cheney Flees To France For Asylum 10-1

Cheney Indicted For Corporate Fraud 4-1

W Indicted For Corporate Fraud 20-1

W Claims Haliburton Fraud Exempt From SEC 2-1

W Switches To Democratic Party 1-2

W Resigns From Office by June 2002 1-5

Bye Bye Billpoint (5, Insightful)

asv108 (141455) | more than 12 years ago | (#3841160)

From the WSJ:

EBay agreed to buy PayPal, a popular payment service, in a stock-swap transaction valued at $1.5 billion. EBay, which separately reported stronger-than-expected earnings, will phase out its in-house Billpoint unit.

I'm sure billpoint wont be missed until paypal fees are raised due to lack of competition.

Re:Bye Bye Billpoint (2, Informative)

abesottedphoenix (468980) | more than 12 years ago | (#3841231)

UGH! Billpoint always got my payments right. PayPal screwed me like 3 times. They double billed me, and their customer service didn't give a rats arse. I hope eBay fixes that. What's going to happen to the Jacoby and Myers suit now?

Re:Bye Bye Billpoint (2)

mshiltonj (220311) | more than 12 years ago | (#3841635)

I'm sure billpoint wont be missed until paypal fees are raised due to lack of competition. ... which will be shortly after billpoint closes shop.

This whole thing stinks.

EBay and PayPal ... not my favorites (3, Interesting)

SuperDuG (134989) | more than 12 years ago | (#3841182)

Granted these are two of the largest companies on the net now in terms of the average joe knowing about them. AOL, EBay, and Paypal are as common as the internet, heck I even read an article about how they were on the internet. EBay has all the junk you could ever want to get, but their security is seriously lacking. While you don't have to use your credit card to bid, the accounts aren't exactly secure. Password compromising is actually very easy. How many times have you heard a story to the tune of, "A hacker broke into joe schmoo's ebay account and started bidding on the weirdest things the other day. It's a shame, now he's a deadbeat bidder."

PayPal, while secure, isn't exactly cheap. While it's quick and secure, if you use credit cards and direct deposit. The fees for transfering funds are outrageous. I think PayPal starts to make up for it through the services they provide that are similar to any other bank. Still not to happy with the chunk of MY check that they take.

Why would ebay do this? Simple, that way they control every part of the bidding experience, from the post, to the bid, to the buy ... I see them maybe trying to buy fedex next. I mean why not, let's plaster EBay on everything!!

Re:EBay and PayPal ... not my favorites (2)

happystink (204158) | more than 12 years ago | (#3841666)

Password compromising is actually very easy. How many times have you heard a story to the tune of, "A hacker broke into joe schmoo's ebay account and started bidding on the weirdest things the other day. It's a shame, now he's a deadbeat bidder."

I've never heard this, ever. And your claim about it being easy to get passwords.. do you have any backup on that?

The fees for transfering funds are outrageous.

Which fees are you refering to here? Paypal have great fees, it's just acouple of percent, no? Maybe I'm confused what you mean here.

Brave New World (1, Interesting)

MarvinMouse (323641) | more than 12 years ago | (#3841185)

Kinda strange how E-bay is transforming the internet economy. They are the only company that has realized that when dealing with the consumers on the internet, you have to let them choose their own prices, or you have to let them have very low prices.

By getting paypal, it sets E-bay up to handle all of their transactions reasonably smoothly (I haven't had problems, but I do hope that the problems other people have had are being resolved.) As well, it might open up the opportunity for E-bay to start selling even more select items, and basically control the simplest internet money transaction service that will be used by most small companies.

(I hate to use analogies from games, but this is a good one.) In the game Civ:CTP, there is a world bank wonder, through which all transactions made in the world are processed. It is a terrific idea if it can be made secure and easy to use. E-bay right now, since it owns such a large auction site, and now one of the better internet payment companies, has the potential to be this internet world bank. By allowing any company to process payments through a simple central server with a few administration and hardware fees.

Just some interesting ramblings. :-)

BayPal, ePay? (5, Insightful)

cybermace5 (446439) | more than 12 years ago | (#3841186)

This is an interesting development. I really don't think we should be worried about some kind of monopoly appearing here, since the success of eBay depends on hundreds of thousands of sellers.

We've seen a few moves like this on eBay's part. This is another way that eBay is trying to shield itself from being slaughtered in the current economy.

First, you have eBay beginning to offer benefits for sellers over a certain income margin, which should encourage sellers to stay with eBay, which increases eBay's financial security. Then, you have eBay buying PayPal. PayPal is one of the most influential external factors to the success of eBay; if PayPal went under, many sellers and buyers would have more difficulty making transactions.

This also allows eBay to begin attacking the single factor that keeps many people from buying at online auctions: fraud. Before now, eBay did not have any ability to track fraudulent users, or take any action against them if they used PayPal. Now, they have the ability to go after and probably halt fraud for the most part.

Overall, this looks like a very intelligent business move, and one that should help continue eBay's pattern of success.

Domination of an Industry (3, Insightful)

pgrote (68235) | more than 12 years ago | (#3841315)

It is the domination of an industry. Period. There are no viable alternatives to either.

eBay has 85% of the market.

PayPal has almost the same numbers.

What you get is one company that can control everything in the process of selling goods auction style online. Fees are raised, people who don't play the game get squeezed out.

Yahoo has seen the light and has stopped their auction services in every country except America. Where do the send the traffic? eBay of course.

I like eBay and I like PayPal. I don't like the combination. eBay has shown a historical record of squeezing out the little guy. They will continue this with PayPal who already has draconian methods of handling customer service.

This is a monopoly of an industry pure and simple. The only thing left for ebay to buy is a delivery company and it will be complete.

One of the chief metrics used to determine a monopoly is viable competition. On this web we use it all the time to look at Microsoft. Here it applies as well. Is there a viable alternative to eBay. No. Is there a viable alternative to PayPal. No.

NoChex.co.uk? (2, Informative)

MrFredBloggs (529276) | more than 12 years ago | (#3841366)

Yeah, I know, it's for the UK only. But I only live in the UK...

Re:Domination of an Industry (2)

JFMulder (59706) | more than 12 years ago | (#3841594)

Maybe they could buy FedEx next? They can come at your house, get the box, package it and send it on the same day. Now that would be nice.

Re:Domination of an Industry (1)

martinschrder (21036) | more than 12 years ago | (#3841885)

This is a monopoly of an industry pure and simple.
Auction sites work best if there is a monopoly, i.e. only one marketplace.

Re:Domination of an Industry (2, Insightful)

FlyingDragon (182542) | more than 12 years ago | (#3841904)

One of the chief metrics used to determine a monopoly is viable competition.

Ahh... but one of the other metrics is the barrier to entry for the market. Office applications and operating systems have a massive barrier. In online auctions, any trusted site can open an auction to chip niche markets away from eBay. With some luck, it will hit mainstream and take a bite out.

More info... (3, Informative)

scrm (185355) | more than 12 years ago | (#3841191)

... here [cnn.com] and here [marketwatch.com] .

How come... (1)

A_Non_Moose (413034) | more than 12 years ago | (#3841194)

...Pay pal did not just put itself up for auction on Ebay?

After all, Ebay is usually know for getting top dollar for useless stuff...prolly could have gotten 3+ billion.

Where Canadians fit into the new schema. (0)

Anonymous Coward | more than 12 years ago | (#3841204)

I've never successfully been able to get a Paypal account due to their naitionalistic streak. Does the buyout mean they're going to play smart now, or is ebay.ca going to go bye-bye along with Billpoint?

Multi-vendor e-com (1)

rogoke (590626) | more than 12 years ago | (#3841214)

Was it really worth 1.5b to ebay to purchase paypal for their current market segment? Seems to me that they are now (with Paypal) in a much better position to attract some of the small-med sized vendors/manufacturers who can't afford a full dedicated ecom site or want more exposure, and push their product through ebay, not having to worry about setting up separate billing systems for each vendor, simply a paypal account.

from the article (5, Funny)

tps12 (105590) | more than 12 years ago | (#3841215)

Asked about the deal, an Ebay spokesperson described PayPal's management as "A++++++++++", calling them "VERY RESPONSIVE" and noting that they "WOULD DEFINITLY BUY FROM AGAIN." PayPal's feedback rating is 1283.

eBay is not the News-Wels Fargo is! (3, Informative)

linuxislandsucks (461335) | more than 12 years ago | (#3841233)

You guys missed it..sure eBay got PayPal all of it..

But look at who partnered with PayPal and invested in Paypal before the eBay transaction..

Wells Fargo..

PayPal is going to be pushed as the online pay site for all online transactions by Wells fargo..

eBay just wants to make sure they have a full handled on that leader..

This seems alright to me (2)

JFMulder (59706) | more than 12 years ago | (#3841269)

It is me, but of all the companies who could have bought PayPal, this is the one I'm the most confortable with. I mean, even tought Ebay is in it for money (after all, you don't buy something at 1.5 billion for fun... or maybe you do, I don't know, I'm not that rich... yet :-p), this is one of the less contreversial takeover/merger that happened in the last few months. They complement each other perfectly, one providing a service, the other the most popular the way to pay on that service.

I don't think tought that Paypal will only work with eBay now. As someone else pointed out, eBay will make a lot more money keeping Paypal as it is right now then making it eBay-centric, tought I'm sure that we'll soon see an option in your eBay account to get a PayPal account, no harm in that.

PayPal not Europe-friendly? (2, Informative)

turnstyle (588788) | more than 12 years ago | (#3841277)

I just spent the weekend with some friends from The Netherlands, and they said that PayPal was increasingly popular back home. So, I'm a little suprised to hear non-US users complain.

I'd be curious to get a sense about how you feel about PayPal and *your* country.

(fwiw, I care because I use it to sell my software [turnstyle.com] , and I've got lots of international users)

Negative PayPal Sent to SlashDot Last Week Ignored (-1, Offtopic)

Anonymous Coward | more than 12 years ago | (#3841289)

That's funny, when I sent this decidely negative story about PayPal to SlashDot last week they completely ignored it.

http://www.wired.com/news/business/0,1367,53533, 00 .html

Re:Negative PayPal Sent to SlashDot Last Week Igno (1)

loggia (309962) | more than 12 years ago | (#3841308)

Thanks for pointing out that story.

Bright side: eBay now has leverage on deadbeats (3, Interesting)

patmandu (247443) | more than 12 years ago | (#3841293)

Now that eBay will control PayPal, this could be a better incentive to keep deadbeat buyers/sellers out of the pool. At least now there may be some real reasons to NOT play dirty and expect to pull it off. I know it's still pretty simple to clean out a bank account and move on, but for those who don't, bank account numbers (and the info associated with them) afford a simple way to track bad eggs as they switch emails and attempt to become 'repeat offenders.'

This is, of course, assuming eBay intends to wield this newly-acquired power for good and not evil...and based on both companies' past behavior, I wouldn't bet on it.

eBayPal? PayBay? Payola?

From Dow Jones Business line (1, Informative)

Anonymous Coward | more than 12 years ago | (#3841313)

God, you'd think some idiot could have found a more informative article to link to than the stupid Register tabloid news.

----
EBay to Buy Online Payment Firm PayPal for $1.51 Billion

SAN JOSE, Calif. -- EBay Inc. (EBAY) said it has agreed to acquire online payment company PayPal Inc. (PYPL) for about $1.51 billion in stock.
The online auctioneer also said Monday that second-quarter revenue came in above its own previous estimates, thanks to 48% growth in its U.S. business and even better growth in international operations, where business more than doubled.

EBay and PayPal already have a close association, with PayPal getting about 60% of its business from the eBay site. The rest of PayPal's business is with small merchants, who present a potential new audience for eBay. Likewise, eBay said, its 46 million users represent a growth opportunity for PayPal.

PayPal, based in Mountain View, Calif., will continue to operate as an independent brand after the transaction closes. PayPal serves businesses and consumers in the U.S. and 37 other countries, enabling users with e-mail capabilities to make payments to each other or to merchants via the Internet.

EBay said, however, it will phase out PayPal's gaming business because of what it described as an uncertain regulatory environment.

PayPal will still offer its Web Accept product, which allows independent online merchants to accept payment directly at their Web sites.

EBay plans to phase out its Billpoint unit after the transaction closes. Seeking to compete with PayPal, eBay in February paid about $43.5 million to acquire the roughly one-third stake in Billpoint it didn't already own from Wells Fargo & Co. (WFC).

EBay expects the PayPal deal to close around the end of 2002.

Under terms of the agreement announced Monday, eBay will swap 0.39 of its shares for each of PayPal's approximately 64 million shares outstanding. Based on eBay's price of $60.55 on the Nasdaq Stock Market at the close of trading Friday, the deal values each PayPal share at $23.61, an 18% premium to PayPal's Nasdaq-traded price of $20 on Friday.

EBay said the estimated $1.5 billion price tag includes about $18 million in acquisition costs.

EBay expects the purchase to dilute earnings because of $13 million in quarterly charges for stock-based compensation and amortization of intangible assets.

For the second quarter, eBay said it will report net income of $54.3 million, or 19 cents a share, on consolidated net revenue of about $266 million. The company previously estimated revenue in the range of $260 to $265 million.

EBay plans to report full second-quarter results July 18.

-Judy Bocklage; Dow Jones Newswires; 609-520-7811

Pay Pal to live, ebay current system to die. (1)

will_die (586523) | more than 12 years ago | (#3841324)

According to the article on zdnet, pay pal will continue to live as a seperate standalone service, while thier current system will be replaced with pay pal. So all of thoses using pay pal outside of ebay don't need to worry.

dept (0)

Anonymous Coward | more than 12 years ago | (#3841328)

from the i-think-ebaby.com-should-sell-children dept.

Sterile as a mule, are we CmdrTaco?

currency speculation-- bid now! (1)

davejenkins (99111) | more than 12 years ago | (#3841330)

actually, i see this working the other way: eBay will start using Pay Pal financial structure to engage in currency speculation and transfers...

GBP10,000 in cold hard British currency! Bid Now!
Kuwaiti Dinars 50,000 going fast!

In other news (-1, Offtopic)

Anonymous Coward | more than 12 years ago | (#3841334)

Goatse.cx [goatse.cx] has changed from apache and now runs on Microsoft IIS! [netcraft.com]

Heh... (1)

transient (232842) | more than 12 years ago | (#3841357)

Raise your hand if you're surprised.

Anyone?

Bueller?

Is it just me... (5, Funny)

mraymer (516227) | more than 12 years ago | (#3841371)

...or does corporate America somewhat resemble a game of Pac-Man?

PayPal for sale (3, Funny)

totallygeek (263191) | more than 12 years ago | (#3841373)

I didn't even get to catch that auction.

Worldcom connection (0)

cmdr_forge (588346) | more than 12 years ago | (#3841381)

Did n't worldcom trade stock instead of cash for some of the companies that it acquistioned? could n't that be the same thing here with ebay?

Hope they read the add... (3, Funny)

(H)elix1 (231155) | more than 12 years ago | (#3841386)

1.5B in paypall stock -- Original box, reciept. (Sold by they same folks selling empty PS2 boxes last year)

Logical but Ironic (2)

fm6 (162816) | more than 12 years ago | (#3841393)

Only yesterday, I was doing an EBay purchase, and noticing that PayPal had gotten slightly more clever at circumventing EBay's attempts to steer buyers to Billpoint. I guess they won that battle!

How it all Began (0)

WellHungYungWun (580730) | more than 12 years ago | (#3841460)

And to think it all started with Trading Pez.

Why buy a bad reputation? (2)

Andy_R (114137) | more than 12 years ago | (#3841491)

I'm sure that for far less than $1.5 billion, they could have set up a company that does everything that PayPal does, but without PayPal's reputation for treading mightly close to the borderline between incomptence and plain old criminality?

Does anyone have any theories as to why Ebay want to be tarnished with PayPal's reputation rather that setting up the alternative to paypal that people want?

Re:Why buy a bad reputation? (4, Insightful)

happystink (204158) | more than 12 years ago | (#3841735)

Because it would take them far more than 1.5 billion to gain the market dominance that Paypal has, and because Paypal only has a bad rep among a small percentage of internet users who reside on boards like this. Any huge company is going to have unhappy users, any huge financial one even moreso, just because you find a dozen unhappy stories (or one sides thereof) at paypalsucks doesn't mean the company is the sham it's portrayed as there.

Re:Why buy a bad reputation? (2)

nlh (80031) | more than 12 years ago | (#3841964)

Because to 90% of the population, PayPal doesn't have a bad reputation. It's just within the active trader / nerd universe that PayPal is the evil empire.

nlh

I'm not sure what to think... (4, Interesting)

Guppy06 (410832) | more than 12 years ago | (#3841495)

I trust PayPal about as far as I can throw them, but I like BillPoints just about the same. I always found it rather interesting that they can take money out of my checking account "instantly," but it takes 3-4 days to put money into it (allowing them to earn interest off of mymoney). Of course, there's also PayPal's social engineering attcks ("We can e-mail your buyers when your auctions end automatically, update your PayPal logo to a "Pay Now" button, all you have to do is give us your eBay password...")

To be honest I'm not really sure what to make of this development. In my auctions I've been flip-flopping between accepting one or the other depending on what price I think it will go for (PayPal is a little cheaper for auctions over $15.00), but either way I still feel like I'm getting ripped off from their per-dollar fees. Heck, at this point I'd rather my buyers mail me a personal check instead, and I'm getting to the point where I'm considering to offer my buyers a refund of the $1.27 if they just mail me a money order instead...

Will this make things on eBay more smooth? Will PayPal's fees for e-checks more resemble BillPoint's? Will they now start charging a "deposit fee" just as BillPoint does? Will eBay start throwing around their monopoly power at my expense? Will there ever be a new competitor to them? Will this prevent PayPal and eBay from passing the blame back and forth if there is a problem with a transaction? Will BillPoint's fees drop?

And, most importantly, does anybody else know of a current competitor to both of these people I could switch to?

i can see this (1)

Jacer (574383) | more than 12 years ago | (#3841759)

i can see this being a step in the right direction. with all the problems revolving around paypal, i hope that ebay can resolve it making it a service that's more responsive to complaints. i only hope that they don't make it an ebay only thing. think of the revenue they'd gain if they keep it open to everyone!

Not sure if this is good, bad or none-of-the-above (0)

Anonymous Coward | more than 12 years ago | (#3841794)

ISTM I've seen comments that PayPal's customer support is pretty poor. I dunno as I've never had to use it. eBay's "customer support" I *have* had to *try* to use. If my experience and that of some others I've seen is any guide: whatever the quality of PayPal's customer support, eBay will likely make it worse.

I got so fed up with eBay that I both put up a web page describing my saga (not going to mention it here, for obvious reasons) and I've not had an eBay account for probably goin' on two years. I may have to cancel my PayPal account before eBay gets its clutches on it :(.

heh (0)

Anonymous Coward | more than 12 years ago | (#3841908)

theregister is good .. it seems like slashdot
gets most of their material from them. except
for those incisive johnkatz pilesopoop. it has
gotten to the point where the only good reason
to read slashdot is to rag on the morons that run
it.

yep.
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