ebay pay pal merger

1. Placement training
Indira Institute of Management.
Sanket Jagtap, Roll no-22  

3.  AuctionWeb was founded in San Jose, California, on September 5,
1995, by French-born Iranian-American computer programmer
 eBay Inc. provides online platforms, tools, and services to help
individuals and merchants in online and mobile commerce and
payments in the United States and internationally
 A multi-billion dollar business with operations localized in over thirty
countries
 On April 18, 2012 eBay reported a 29% Q1 revenue increase to $3.3
billion compared to their Q1 in 2011. Net income was reported to be at
$570 million for the quarter

4.  In November 1996, eBay entered into its first third-party licensing
deal, with a company called Electronic Travel Auction to use
SmartMarket Technology to sell plane tickets and other travel
products.
 The company officially changed the name of its service from
AuctionWeb to eBay in September 1997.
 In February 2002, the company purchased IBazar, a similar
European auction web site founded in 1993 and then
bought PayPal on October 14, 2002.
 By early 2008, the company had expanded worldwide, counted
hundreds of millions of registered users, 15,000+ employees and
revenues of almost $7.7 billion

5.  PayPal enables any business or consumer with an email address to
securely, conveniently, and cost-effectively send and receive
payments online.
 It builds on the existing financial infrastructure of bank accounts and
credit cards to create a global, real-time payment solution.
 It delivers a product ideally suited for small businesses, online
merchants, individuals and others currently underserved by
traditional payment mechanisms.

6.  1998: Peter Thiel and Max Levchin found Field Link, soon
renamed Confinity.
 1999: Confinity launches first version of the PayPal
electronic payments system.
 2000: Confinity is acquired by X.com Corporation.
 2001: X.com makes initial offering of stock on NASDAQ;
firm is renamed PayPal Inc.
 2002: eBay Inc. acquires PayPal for $1.5 billion in stock

7.  Competitive Landscape: eBay was in talks to make Billpoint (a credit card
processing service) free to all eBay auctioneers.
 Billpoint had small market,but this subsidy would have undercut PayPal in its
core market at a point when the company had not yet broadly diversified
outside of auctions.
 Mutual Dependence with eBay: At the time of the sale, 70% of all eBay
auctions accepted PayPal payments, and roughly 1 in 4 closed auction
listings were transacted using the payment service.
 Regulatory Risk: The company had to apply for money transmitter licenses
on a state-by-state basis once the FDIC established that it was not a bank
 Regulators, such as NY Attorney General Eliot Spitzer, sought to challenge
the company’s business practices.

8.  PayPal is a diversified business that generated only 33% of its
revenue from sales in eBay’s marketplace
 It’s accepted as a payment method with gigantic merchants such as
Home Depot and Dell.
 The company is also on sure legal footing.
 A decade ago, over two-thirds of its revenue came from eBay
auctions.
 A decade ago, there were still lingering questions as to whether
some regulatory body would try to shut it down

13.  eBay’s core business getting tough fight
 PayPal's revenues have grown at about 25% over the
past two year and experts expect it to continue growing
at similar rates in the near term.
 PayPal contributed $1.37 billion in sales, or just over
40% of all of eBay Inc’s net revenue
 PayPal constitutes 46% of the price estimate for eBay's
stock.
 Merchant services contributes about 65% of PayPal’s
Total Payment Volume
 Some notable customers include Barnes &
Noble, Dell, and NorthWest Airlines

14.  Full time employees : 30,000
 Market Capitalization : $68.80 billion
 Profit Margin for year 2012: 18.54%
 Revenue in year 2011-2012: $14.07 billion
 Operating Cash Flow: $ 3.84 billion

15.  First and foremost, a small legion of great entrepreneurs
dubbed the “PayPal Mafia” arose from PayPal’s ranks.
 Companies started by alumni include LinkedIn (Reid
Hoffman)
 YouTube (Chad Hurley, Steve Chen, and Jawed Karim)
 Yammer (David Sacks),
 Tesla (Elon Musk)
 Yelp (Jeremy Stoppelman and Russel Simmons)

16.  Mig 21,
 F/A 18 hornet
 coelopleurus exquisitus- A new species

17. Thank You