EBay Inc. is adding to its vast online auction empire with a roughly $620 million cash purchase of online comparison shopping site Shopping.com Ltd.
eBay said today it paid $21 a share for Shopping.com's outstanding shares to provide more services for online shoppers and help eBay merchants increase sales. As part of the arrangement, Shopping.com will operate as a separate unit of eBay and will also include eBay listings on its site. Nearly 2 million consumer reviews from Shopping.com's Epinions will be added to eBay's site to provide customer feedback on products, eBay said. “The acquisition of Shopping.com will allow us to provide even more opportunities for our sellers,” said Bill Cobb, president of eBay North America, in a statement.
The deal is expected to close in the third quarter of this year if regulators and shareholders approve the transaction.
eBay is hoping the deal will kickstart sluggish growth rate at the company, The Wall Street Journal said in its coverage of the news, noting that Shopping.com was founded in 1998 and survived the dot-com collapse. More from the Journal: "The acquisition is eBay's latest effort to reignite its growth, particularly in mature markets such as the U.S. and Germany. In the past few years, eBay has invested heavily in international expansion into countries such as China and India. The San Jose, Calif., company also has developed, acquired and taken stakes in several Internet classified-ad sites. Shopping.com, which is free to consumers, generates revenue primarily from merchants that pay fees when Internet users click on listings to reach their Web sites," the newspaper said. "The deal also shows how once-distinct Internet businesses have begun to converge and compete. Merchants that once relied exclusively on eBay now also list their wares on Amazon.com Inc., or on their own Web sites, which they promote by buying search-related ads on Google Inc. and Yahoo Inc."
Reuters reported more on how eBay's move pits the company against Google (Google, recall, is bumping up as a competitor for a wide range of companies, including the usual suspects Microsoft Corp. and Yahoo and other smaller players too). "The move by Ebay would strengthen its hand in being able to bring consumers online comparison shopping, something that Internet search engine Google Inc. (has dabbled in with its Froogle service, along with other Internet companies," the wire service said.
Broadband For the Masses
SBC Communications plans to price its broadband Internet service at a cost that is cheaper than a number of slower dial-up services. The Wall Street Journal said the $14.95 a month plan for new customers "may compel competitors to follow suit. Cable companies currently dominate the high-speed business, but typically charge considerably more for the service, often $40 or more a month. The basic broadband plan at cable giant Comcast Corp. for instance, is $42.95." Reuters has more details on SBC's cost-cutting move. While not good for competitors, the price cut is great for customers who may be tired of shelling out $40 or more a month for something that is quickly becoming commoditized.
Forget Phone Calls, Try Playing Games
The cell phone industry is finding more ways to turn cell phone handsets into multi-function devices that play music, games and manage busy lives with calendaring systems and more. Electronic Arts is the latest company to tap the cell phone business, this time partnering up with Qualcomm Inc. to bring games to mobile phones, the Journal reported.
Can't We Just All Share?
Sun MicroSystems is kicking off a new PR/ad campaign to boost its image. Adweek.com explained what's behind Sun's "Sharing" effort, which is supposed to highlight how Sun's products and services help connect business and people. I am guessing the theme song is "Kumbaya."
As the Blog Turns
The mainstream press continues its fascination with blogging. The Wall Street Journal yesterday ran a piece on how some scribes are being paid by corporations to be official in-house bloggers. The New York Times yesterday had its own article on blogs that are designed as online confessional tools. It's an interesting read. An excerpt: "At PostSecret, found at postsecret.blogspot.com, the confessions are consistently engaging, original and well told. How come? The Web site gives people simple instructions. Mail your secret anonymously on one side of a 4-by-6-inch postcard that you make yourself. That one constraint is a great sieve. It strains out lazy, impulsive confessors."
Play Me A Tune
And for classical music and piano buffs wanting to find the latest news on the International Van Cliburn Competition, which is underway in Texas, there is a Webcast and blog to track the event, CNET's News.com reported, calling the event the "Olympics of piano playing." I can play "Chopsticks," but I don't think that will qualify me for the competition.
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Posted by: jaremy | 2008.12.10 at 04:15 AM