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Some Think Google Should Go After eBay

Others, Not So Much

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There is an interesting article at Seeking Alpha called "Why ‘GooBay’ Makes Sense." Obviously this is a "what if Google bought eBay?" piece, and feedback to the article thus far isn’t real keen on the idea, but there are some valid points throughout the article nevertheless.

Mainly, the article talks about how Google is a "one trick pony" in that nearly all of its revenue comes from search engine advertising no matter how many products the company offers (although I would contend that they are poised to get a decent amount from YouTube as well).

The author says Google’s pony has a very good trick, but it is still one trick. Why don’t they buy eBay? The author writes:

I ask why not? It’s a natural fit. Google has already tried to create an eBay clone with Google Base. It already tried to create a PayPal clone with Google Checkout. It was also no secret that Google was one of the few suitors during the bidding wars for Skype.

SkypeAs I’ve discussed in previous articles; many investors do not realize that eBay.com is a huge conglomerate of dot com properties. My previous thesis even went as far as showing that eBay.com proper was actually not even priced in at a valuation. That was when eBay was trading far higher than today. Based on current valuation – eBay is even more of a compelling value play. (Its price is nearing book value.)

StumbleUponThe article goes into a lot of detail and talks specifically about the benefits of owning properties like Skype and PayPal. One thing it does not mention is eBay’s ownership of StumbleUpon, a service that Google was rumored to be in talks to buy before eBay acquired it in 2007, although the company apparently hasn’t jumped on it since eBay has expressed interest in unloading it.

There is no question that disgruntled eBayers who have time and time again bashed the company’s management and its decisions would welcome a fresh start from the company, but just the same, many would rather not see Google tainted by it either.

For the record, this is just one person’s ideas, and to the best of my knowledge eBay has not expressed interest in selling and Google has not expressed interest in buying. It’s just one of those things that people think about and like to talk about.

Some Think Google Should Go After eBay
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  • http://auction.tumblr.com Wishful Thinker

    I can’t see Google making a bid for eBay. There’s too much cross fertilisation at risk.

    The people eBay could really do some good for is surely Microsoft. Couldn’t they build on Skype? Didn;t they want a search engine? Well there aren’t many businer search engines than eBay’s.

    Think of the potential Paypal would bring to MS?

    And MS have deep pockets too.

    I liked the idea behind this article:

    http://www.pheebay.com/?my-vision-for-ebay-is-simply-to-ask-people-to-bid,-buy-or-sell-652.html

    If eBay had adopted that kind of similarity to Amazon a few years ago now I doubt we would have all the buzz around the blogosphere about eBay. Like the writer there says, Donahoe isn’t likely to listen to anyone so it’s highly likely the classic website will drift now and a takeover looks it’s best hope with new ideas like the one highlighted.

  • Guest

    I wish ebay would just go away. If someone did buy out ebay they should change the name because ebay is like a desease that everyone is trying to avoid. The ebay powers that be have pissed off it’s sellers so bad, no one can trust them now, and anyone associated with them would not be trusted.

    They pissed me off so bad I went and purchased my own store. And you can too.

    Go here – http://www.hackswholesale.com/Marketing/DD_index.asp

    Your store could look like this without all the fees – http://hackswholesale.com/

  • Guest

    I agree. I really don’t want anything to do with them ever again no matter who is in control.

    Here’s two GREAT alternatives to feebay without all the fees.

    http://www.plunderhere.com/index.php?ref=108786

    http://www.livesimon.com/526.html

  • Guest

    Why would google even want a loser such as ebay?

    For that matter, why would anyone with half a braincell want anything to do with ebay?

    ebay is dead, it just forgot to fall over.

  • http://www.chicagohomemortgages.org/ Chicago Home Mortgages

    That would be one move that would create a complete internet monopoly. I sure many lawsuites would be quickly filed if that merger would happen. Google already controls the entire internet, I just hope they stay away from my shopping.

  • http://www.durashopping.com Guest

    Microsoft buys Ebay? Why not! Any company that thinks five cents of plastic and ten cents of cardboard with an OS on it or other software is worth $200 can see that buying Ebay would be a great way to screw over lots more people. The truth is I think that would be a big mistake for microsoft. I think more sellers would run away and Ebay would die faster. It would be the same with Google. Google has screwed alot of people also. I say screw ALL the big companys. Lets stop makeing CEO’s rich for nothing, alot of big companys have gotten a bailout lately but the CEO’s are still getting paid millions? And the rest of the management still gets a big bounus.
    What a great country this is, run the company into the ground, screw people out of hard earned money (including your investors) and take home truck loads of cash, then let the tax payers pickup the tab! Or just screw the little guy to keep profits up and your investors or stock holders happy and stay out of the headlines. Its time to stay away from the big sharks before one eats you alive.

    Do your own thing! Play it safe! Start your own website and sell your own products like I did. Now I make all the money, I pay no fee’s and I have lots of income streams on my site not just my products.

    You can do it too!
    Go to:
    Durashopping.com

    • http://www.durashopping.com Guest

      I know Google buying Ebay was the topic, but a poster also suggested Microsoft. I agree! I thinkl that would kill Ebay for shur! Lets all send an email to Bill Gates and tell him what a good deal Ebay would be! We can kill two greedy corparations with one stone.

  • Guest

    If Google is so powerful by just advertisers then why doesn’t ebay stop charging buyers & sellers and just go after advertisers? Do you have any idea how that would completely change ebays revenue? Not to mention how people are just tollerating them until something better comes around. ebay has still got a possibility of changing things if they would only stop charging so much.
    Speaking of charges: PayPal – Tell me what banking system that you go to actually charges you for depositing or withdrawing money? All banks I have used just use the money in your account & never charge for deposits or withdrawls. What kind of a scam is this?

  • http://DONSCYCLEWARE.COM Don

    There is nothing wrong with concentrating on your area of expertise, doing a great job and making a ton of money.

    Google has a great search engine and is making a huge profit selling advertising. Why get sidetracked into trying an online sales venue?

    Don

  • http://www.roofportland.com Portland Roofer

    It’s great to find articles like this and you suddenly realize how much eating up of smaller web properties has been going on, by larger, much more powerful companies like Google, looking to broaden their portfolio. I’m not sure about how much owning ebay would benefit Google, and at what point they stretch themselves too thin… but it’s great food for thought. Indeed.