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Wednesday, October 15, 2008

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Damon Billian

eBay needs to move on lowering fees & turning the business into profit by volume. I also don't entirely understand the reasoning behind killing auctions so much (fixed price & auctions could easily co-exist). Why not let the buyer decide what they want to look at when they enter the site (fixed v. auctions)?

Ted Murphy

Not sure why Ebay needs to drawdown $1 billion in revolving credit when they have $3.64 billion in cash on hand and no debt. Supposedly because of their $1.3 billion in recent acquisitions. It sounds fishy to me.

Only way it makes sense is if they have counterparty transactions that may be driving liquidity concerns. Stock's at less than 10x forward earnings, though, real cheap.

RAGZ

Another great one Dave. Very relevant to me.

sprfrkr

DMC, we've spoken on this before in your PayPal days. Of course they should spin it off- they won't though. It will eclipse the eBay Marketplace revenues within 5 years imho. So they spin it off, get a ton of cash to play with, then what? They will still make the same mistakes as they are now with eBay. Frankly, I'm surprised they are letting PayPal run as free as it has been, but with that kind of growth, they are smart not to touch it.

dave mcclure

ok, so i get that there's no credit *at the moment*, but you think that's gonna be the case forever?

gotta believe SOMETIME in the next few quarters there will be some folks itching to get back into that business.

for stuff that's not proven i can see there being a long drought, but PayPal has a long & strong track record...

Allan

Dave,

The private equity guys can't borrow money to do an LBO cause the credit crisis has dried up all sources of credit.

I would say that your suggestion to spin out PayPal as an independent company would be awesome for the market. PayPal is the best business unit in eBay. The market would actually be eager to buy a quality issue.

Given enough time - PayPal should be bigger than eBay Marketplace.

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