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E bay pay pal


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ebay pay pal merger

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E bay pay pal

  1. 1. Placement trainingIndira Institute of Management.Sanket Jagtap, Roll no-22  
  2. 2.  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
  3. 3.  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
  4. 4.  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.
  5. 5.  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 Corporation. 2001: makes initial offering of stock on NASDAQ; firm is renamed PayPal Inc. 2002: eBay Inc. acquires PayPal for $1.5 billion in stock
  6. 6.  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.
  7. 7.  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
  8. 8.  eBay’s core business getting tough fight PayPals 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 eBays stock. Merchant services contributes about 65% of PayPal’s Total Payment Volume Some notable customers include Barnes & Noble, Dell, and NorthWest Airlines
  9. 9.  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
  10. 10.  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)
  11. 11.  Mig 21, F/A 18 hornet coelopleurus exquisitus- A new species
  12. 12. Thank You