Feeds

eBay cuts jobs, buys credit firm

Credit? What could possibly go wrong?

High performance access to file storage

eBay is laying off 1,000 staff and getting rid of hundreds of temporary positions at the same time as it buys three companies.

The job cuts will come at eBay offices around the world, and will cost the firm between $70m and $80m.

John Donahoe, the online tat house's chief executive, said of the redundancies: “While never an easy decision to make, these reductions will help improve our operations and strengthen our ability to continue investing in growth.”

In other news, eBay has paid $945m for an online credit firm called Bill Me Later - $820m of this is in cash and $125m in outstanding options. eBay is also buying two Danish classified firms - dba.dk and bilbasen.dk for $390m in cash.

eBay said Bill Me Later was a natural partner to PayPal. The company provides instant credit to consumers shopping online. When you get to the checkout of one of the 1,000 online shops which accept it, you can enter your birthday and the last four digits of your social security number instead of paying by credit card. It uses its "sophisticated underwriting techniques and credit decision model" to approve shoppers in seconds.

Bill Me Later will then send you a monthly bill which you can pay by cheque. It aims to attract the large number of shoppers who are nervous of using their credit cards online. Investors in Bill Me Later include Citgroup, Amazon and Equifax.

eBay expects the deal to bring in $150m in revenues in 2009 but to dilute GAAP earnings by $0.13 per share for the year. eBay predicts it should add to earnings by 2011.

The Danish classified sites are added to eBay's stable of similar websites including Kijiji and Gumtree. The firm claims an online classified presence in 20 countries.

eBay's SEC filings are available from here.

eBay said it expects to hit the bottom end of targets for sales for the third quarter - full results will be announced 15 October. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.