That compares with the $2.4 billioneBay spent to acquire the division in 2011, when it was known as GSI Commerce. PayPal grew new active accounts 11% to 169 million and processed 1.1 billion transactions, the company noted. “As eBay celebrates its 20th anniversary this year, we are making rapid changes to position the company for the future”, said Devin Wenig, President of eBay, in a statement.
Advertisement
Marketing components within the eBay Enterprise stack include database marketing through MBS, attribution via ClearSaleing, affiliate and paid search tools through PepperJam Exchange, mobile messaging via M3 Mobile, sell-side media with GSI Media, display and retargeting via FetchBack and email and agency services via E-Dialog.
Revenue rose to $4.38 billion from $4.10 billion.
EBay’s net income for the quarter was $83m, excluding a $786m charge for the Enterprise sale.
EBay had said in January that it might sell Enterprise, which develops online shopping sites for brick-and-mortar retailers.
Bottom line? It’s the same story we’ve seen with EBAY stock for the last few years now: PayPal thrives as eBay struggles.
Thomas H. Lee Partners is likely to purchase eBay Enterprise with a price range of $800 million to $1 billion.
EBay (NASDAQ:EBAY) early Thursday reported mixed second-quarter earnings and announced the sale of a business unit, as it readies its PayPal spinoff set for Friday. Any deal will appear on the eve of eBay’s divide into two entities, with the company aimed to spin off its online marketplace business from its PayPal payments unit.
The biggest goal for eBay will be growing its user base. The marketplace business, which essentially makes up the main eBay.com website, shrank for the second straight quarter after several years of growth.
eBay Inc.’s commerce and payments ecosystems continued to increase the role they play in global commerce, with gross merchandise volume (GMV) growth on an FX neutral basis accelerating 1 point over the prior period to 6% and net total payment volume growth accelerating 3 points to 28%.
Advertisement
The company also announced an additional $1 billion share buyback program.
