Case Study : Financial Management : Ebay

1419 Words May 1st, 2015 6 Pages
FINANCIAL MANAGEMENT

Adel Elabd
MIB Abbey Road
Prof. Andros Gregoriou
HULT

Introduction
EBay is one of the leading companies that emerged from the “dotcom” era of the late 1990s and early 2000. Established in the year 1995 as a site where people could sell products in an open market, EBay has grown to include a listing of millions of items that range from cars to toys and medical supplies, albeit in limited circumstances (Amazon.com Inc., 2014). Unlike its major rivals in the industry, EBay does not carry a listing of its own on the website under its label. EBay derives its revenues by charging its sellers a fee when the sale is concluded or when they make a listing on the site. Apart from the website, EBay also owned a share in teleconferencing company, Skype, before the company was wholly purchased by Microsoft in the year 2011. EBay also has a stake in the classified advertisements listing market though Craigslist, though the relationship between the two companies is frosty after they took each other to court on matters of fiduciary duties. However, EBay’s purchase of PayPal, an online payment service has proved to be a success, with the subsidiary contributing almost half of all the revenues reported by EBay. PayPal’s success has led to EBay’s decision to divest the two companies with PayPal being listed in the stock market as a separate company (Amazon.com Inc., 2014). With a growing demand for online marketing services, it is expected that EBay will continue…

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