Just saw this: Paypal and eBay to splitup in 2015

[JustinNH]

Saw this and thought I would share:

PayPal to separate from eBay in 2015

Says that they plan to split up in a year. I wonder if the fees will change and if so, for better or for worse?

 

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[treasurekidd]

I'm not sure about the fees, but the best part of the story is the eBay CEO John Donahoe will step down after the split. IMO, he's the one most responsible for all of the idiotic policy changes that eBay has implemented over the last few years. New leadership has been needed at eBay for quite a while, and it looks like we're finally going to get it.

Oh, and maybe Paypal will get rid of their awful new interface format. I HATE it!!

 

[JustinNH]

Yeah, I noticed that as well and I hear him blamed for a lot of the changes that brought eBay further away from the original market feel of it. If true, hopefully the new guy brings eBay back. I only started to sell within the last year, but have bought from eBay for longer than I've been able to use a credit card.

 

[GibH]

This is not going to go well for sellers. If you think Ebay fees are high now, watch what happens soon after the split. Ever since Ebay went public, fees have climbed. A public company has to be able to show growth to keep attracting investors. Paypal was a brilliant acquisition for ebay and it was able to provide the necessary growth to remain attractive.

Even worse than the ebay aspect of this is if Alibaba is the acquiring comapany of Paypal.

 

[2ndisbest]

As I have posted before, this is bad. Ebay itself does not make much money, paypal is the cash cow. Carl Icahn ranted and raved about it all the time. I can only see fees going higher and customer support going into the crapper. Conspiracy theory or no, I still think ebay is driving small sellers off ebay to help the bottom line.

 

[dieselram94]

As I have posted before, this is bad. Ebay itself does not make much money, paypal is the cash cow. Carl Icahn ranted and raved about it all the time. I can only see fees going higher and customer support going into the crapper. Conspiracy theory or no, I still think ebay is driving small sellers off ebay to help the bottom line.

OK, I can see your point...on some of this. But how is driving off small sellers going to help the bottom line?

sent from a potato with gravy!!...

 

[treasurekidd]

Even worse than the ebay aspect of this is if Alibaba is the acquiring company of Paypal.

I think they'll have competition for it, namely Google.

 

[Paleo_joe]

The magic of the market will result in lower prices for buyers, increased profits for sellers, and rainbow ponies for all third-grade girls, as it always does.

 

[NJcigarman]

Apple Ipay is making PayPal cringe. Surprised that they said PayPal is going to get involved in Bit Coin too

 

[2ndisbest]

OK, I can see your point...on some of this. But how is driving off small sellers going to help the bottom line?

sent from a potato with gravy!!...

Basically less customer support. Less CS, less overhead. They obviously want the big retailers to stay but little guys don't bring in much money.

 

[GibH]

Basically less customer support. Less CS, less overhead. They obviously want the big retailers to stay but little guys don't bring in much money.

1 little guy = not much money
10 million little guys = lotsa money

Customer support can't be that high of an expenditure. Most of it is automated, 90% of what isn't automated is outsourced to India.

 

[clovis97]

This split is really, when you boil it down, what Wall Street calls "creating value."

We all know that creating value is a load of horse manure. The only creation of value will be for those actively and closely involved, and really, no one else.

Here is how it works: Spin off new company. The parent company will retain a monster sized share of the new spin-off. Their reasoning is that they let a $5 gazillion dollar company go free, so they should hold that amount in shares, or something like that. All of the big wigs will get stock options for their hard work and input (another load of horse manure), especially those who "created value" with the spin off. The new spin-off will be pitched as a high growth wonder company to all of the investment banks. The investment banks will agree to buy the majority of the shares, and will take the new spin-off public, in an IPO. The investment banks will pump this stock through the roof, and then value the new company at $8 gazillion. A week later, they will value it at $12 gazillion.

On the first day of the IPO, the investment banks will put a stranglehold on the available shares on the market, severely limiting the number of shares to be bought and sold, manipulating a false supply and demand in the marketplace. Originally, the stock was valued at, let's say, $30 a share, then revalued, and issued on the market for $42 a share. On the day of the IPO, since everyone listing to Cramer on Mad Money tries to get rich, and attempts to buy the small amount of shares on the market, which opened at $46, paying $66, then $86, then $96, then $106, then $116. The banks start dumping their shares quietly, selling at $116 instead of the $30 or $42.

You come home that night, flip on the news, and hear "A smashing new success with the new Paypal IPO, which debuted today, with shares up a whopping..."

You look at your wife and say, "Wow. Did you see that? If would have invested $10,000 in that stock, we would have been rich."

The only people who got rich were the fat cats...the fat cat always eats first. Ever see a greedy cat get fed? How much do they leave for the other cats wanting to eat?

 

[Oregon Viking]

I hope everyone likes Vaseline.....

 

[diggummup]

I guess all we can do is wait and see what the repercussions will be.

 

[clovis97]

Just a total theory, but I wonder how much pressure that Carl Icahn put on Donahoe to step down...there has been a tough fight between ebay and Icahn.

 

[Paleo_joe]

This split is really, when you boil it down, what Wall Street calls "creating value."

We all know that creating value is a load of horse manure. The only creation of value will be for those actively and closely involved, and really, no one else.

Here is how it works: Spin off new company. The parent company will retain a monster sized share of the new spin-off. Their reasoning is that they let a $5 gazillion dollar company go free, so they should hold that amount in shares, or something like that. All of the big wigs will get stock options for their hard work and input (another load of horse manure), especially those who "created value" with the spin off. The new spin-off will be pitched as a high growth wonder company to all of the investment banks. The investment banks will agree to buy the majority of the shares, and will take the new spin-off public, in an IPO. The investment banks will pump this stock through the roof, and then value the new company at $8 gazillion. A week later, they will value it at $12 gazillion.

On the first day of the IPO, the investment banks will put a stranglehold on the available shares on the market, severely limiting the number of shares to be bought and sold, manipulating a false supply and demand in the marketplace. Originally, the stock was valued at, let's say, $30 a share, then revalued, and issued on the market for $42 a share. On the day of the IPO, since everyone listing to Cramer on Mad Money tries to get rich, and attempts to buy the small amount of shares on the market, which opened at $46, paying $66, then $86, then $96, then $106, then $116. The banks start dumping their shares quietly, selling at $116 instead of the $30 or $42.

You come home that night, flip on the news, and hear "A smashing new success with the new Paypal IPO, which debuted today, with shares up a whopping..."

You look at your wife and say, "Wow. Did you see that? If would have invested $10,000 in that stock, we would have been rich."

The only people who got rich were the fat cats...the fat cat always eats first. Ever see a greedy cat get fed? How much do they leave for the other cats wanting to eat?

Let me add to that by noting that the capital gains on those profits are taxed at a lower rate than if they were a workingman's wages. Especially after more financial engineering takes place.