CORPORATE DEVELOPMENT AT A GLANCE $3.1 Billion $668.5 Million ...
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CORPORATE DEVELOPMENT AT A GLANCE
eBay Inc.: A Growing Portfolio
With a strong portfolio of brands, eBay Inc. is a global leader in three of the Internet’s most common activities: commerce, payments and
communications. Founded in 1995 as a U.S.-only marketplace focused on collectibles, eBay has grown significantly, largely through
acquisitions. eBay Inc. looks for companies that support or extend existing businesses and/or help it enter new businesses. In every case,
new properties not only strengthen eBay Inc.’s portfolio, but support the company’s vision of ecommerce.
Keys to Company Growth
In addition to strong organic growth, acquisitions have been a key growth driver. Since 1998, eBay Inc. has completed more than 30
acquisitions. As of Q109, acquisitions account for about 47% of the company’s revenue.
Strong Top Line Growth (in millions)
Strong EPS Growth
GAAP
Non-GAAP*
$1.71
$1.53
8.54
$1.36
$7.67
$1.05
$5. 97
$0.86
$0.78
$0.79
$4.55
$0. 57 $0.61
$3.27
$0.25
2004 2005 2006 2007 2008
2004 2005 2006 2007 2008
Y/Y Growth
Y/Y Growth
GAAP -15% 37% 1% -68% 444%
51% 39% 31% 29% 11%
Non-GAAP* -19% 41% 22% 46% 12%
A Methodical Approach to Corporate Development
Pending Acquisition: Spring 2009
Strategy: Build long-term shareholder value by acquiring and integrating with
companies that:
Support our core businesses (online commerce and payments) through
expansion into new regions or new technologies
Move us into adjacent product or business areas
Open new lines of businesses
Criteria
Existence of synergies and/or complements to existing eBay objectives
Name: Gmarket
Clear and attainable/achievable integration goals
Location: Seoul, Korea
No preference for deal size
Price: Approximately $1.2 billion
Integration
assuming all outstanding shares are
Strong history of successful integrations in global markets
tendered
Dedicated integration team
Deals evaluated on a case by case basis to determine the best strategy
Strategic Fit: Strengthens eBay’s
position in Korea, and provides a
platform for longer-term expansion into
We have the financial flexibility to pursue attractive opportunities:
other markets in Asia.
$3.1 billion
Consumer Benefit: Buyers enjoy a
in cash and cash equivalents on balance sheet in Q1 2009
better user experience through
improved customer loyalty programs
$668.5 million
and incentives. Sellers have access to
in operating cash flow in Q1 2009
improved tools for quick, simultaneous
listing across both platforms, and
$577.6 million
greater selling opportunities outside
in free cash flow* in Q1 2009
Korea.
For more information, contact Jose Mallabo at press@ebay.com call eBay’s media hotline at 408.376.7458. For the latest eBay Inc. news, go to ebayinkblog.com. Updated: Q1 2009
*For reconciliation to the nearest GAAP figure, please go to news.ebay.com/fastfacts.cfm
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CORPORATE DEVELOPMENT AT A GLANCE
HOW THE PORTFOLIO* WAS BUILT: 2001−PRESENT
*Key acquisitions only.
eBay has a presence in 39 markets, not including classifieds properties
**Joint venture or minority stake
KEY ACQUISITIONS: PayPal & Skype
• Acquired in 2002 for $1.5 billion.
• Acquired in 2005 for $3.1 billion.
• PayPal is the leading global online payment company — where
• Skype is the global leader in Internet communications, allowing
any person or business with an email address can securely, easily
people everywhere to communicate via voice and video for free.
and quickly send and receive payments online.
• 443 million users worldwide (Q1 2009)
• 73 million active users worldwide (Q1 2009)
• 15 million concurrent users
• 190 markets using 19 currencies
• 300,000 simultaneous calls
• $60 billion in Total Payment Volume (2008)
• 100 billion minutes of Skype-to-Skype calls to date
• 28 languages supported by Skype in nearly every country on earth
PayPal Net Total Payment Volume (in billions)
Skype Revenue (in millions)
Off-eBay
Profitable for
PayPal is
eBay
the last eight
growing both
$60
quarters
on and off eBay
$126
$136
$143
$145
$153
$115
$7
2002 2003 2004 2005 2006 2007 2008
Q407 Q108 Q208 Q308 Q408 Q109
For more information, contact Jose Mallabo at press@ebay.com call eBay’s media hotline at 408.376.7458. For the latest eBay Inc. news, go to ebayinkblog.com. Updated: Q1 2009
*For reconciliation to the nearest GAAP figure, please go to news.ebay.com/fastfacts.cfm
