eBay relocates $9 bn in preparation for major acquisitions

E-commerce multinational eBay has moved $9 billion in funds into the US, in preparation for acquisitions of new tech firms, the company has announced.

The repatriation of the funds has cost the company $3 billion in taxes, driving the company’s reported 14% rise in profits this year down to a net loss of over $2 billion.

Meanwhile Apple has succeeded in bringing $12 billion in funds into its US accounts without tax charges by means of a bond sale in the US.

With several major takeovers having been announced in recent months, most prominently Facebook’s purchase of WhatsApp and Google’s acquisitions of tech companies like Nest, eBay may be looking for a repeat of its successful purchase of Skype.

eBay made a significant profit on its 2005 purchase of Skype for $2.6 billion by tripling the value of the company before passing it on to Microsoft for $8.5 billion.

eBay’s biggest acquisitions so far

  • Skype (2005) $2.6 billion
  • GSI Commerce (2011) $2.4 billion
  • PayPal (2002) $1.5 billion
  • Bill Me Later (2008) $1.2 billion
  • Braintree (2013) $800 million

As an infographic by Simply Business illustrates, the eBay’s rivals have become increasingly aggressive in the purchases of smaller companies. eBay’s $9 billion in funds will not be enough to top Facebook costly acquisition of WhatsApp for $19 billion.

Feature image: DeLand, FL – February 6, 2014: Ebay credit card issued by Mastercard via Shutterstock / copyright: George W. Bailey

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