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eBay flogs off eBay chunk for $925m as 'uncoupling' gets closer
Tat sales up seven per cent, compared with bumper PayPal growth
Online tat bazaar eBay confirmed it is flogging off its eBay Enterprise division for $925m (£591m), while posting a seven per cent second quarter revenue increase to $4.4bn (£2.8bn).
Total profits plummeted from $676m (£431m) to $83m (£53m) due to the $786m (502m) charge related to the sale of eBay’s enterprise unit.
In contrast, Paypal's revenue increased by 20 per cent to $2.3bn (£1.5bn), compared with the previous year. The total amount of cash to be channeled through PayPal rose 20 per cent to $66bn (£42bn).
Earlier this month, PayPal scooped up digital money transfer provider Xoom for $890m (£570m). As part of its "uncoupling" with the online tat bazaar, PayPal will start out with $6bn (£3.9bn) in cash, which means more acquisitions could be on the cards.
Mike Rogers, analyst at Megabuyte, said the second quarter results for eBay and Paypal "underline the differing prospects for the businesses".
Devin Wenig, president of eBay said of the results: "I am encouraged by the state of our business and the progress against our strategy. As eBay celebrates its 20th anniversary this year, we are making rapid changes to position the company for the future."
He added: "As we move into our next chapter, we also look forward to continuing our strong partnership with Dan [Schulman, president of PayPal] and the PayPal team."
A statement from Permira about the buyout said it expected the deal to close in the second half of 2015. ®