eBay Cuts Staff, Buys Bill Me LaterBy: Mike Sachoff - October 6, 2008
eBay said today it is purchasing U.S. based online payments business Bill Me Later for approximately $820 million in cash and $125 million in outstanding options.
The company is also buying Denmark based online classified site dba.dk and vehicles site bilbasen.dk for $390 million in cash.
"We are making aggressive moves to strengthen our leadership positions in e-commerce and payments to competitively position our company for long-term growth," said John Donahoe, eBay Inc.’s president and chief executive officer. "Bill Me Later is a perfect complement to our portfolio, a company that belongs with PayPal.
eBay has also announced it plans to cut its global workforce by 10 percent, a move that will affect 1,000 employees along with several hundred temporary workers. The company says that cutting its workforce will improve its cost structure and strengthen the overall competitiveness of its existing business.
"While never an easy decision to make, these reductions will help improve our operations and strengthen our ability to continue investing in growth," Donahoe.
eBay said its workforce reduction is expected to incur restructuring charges of about $70 million to $80 million, primarily in the fourth quarter.
The company says it expects to hit the low end of its third quarter revenue forecast of $2.1 billion to $2.15 billion and exceed the high end of its earnings forecast range of 39 cents to 41 cents per share, before items. eBay is scheduled to announce third quarter results on October 15.