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EBay Bids $620 Million On Shopping.com
By David Utter
Expert Author
Article Date: 2005-06-02
The online auction site has acquired the comparison-shopping site in an all cash deal announced yesterday.
Along with Shopping.com, eBay picks up the hugely popular Epinions web site. Shopping.com also incorporates the DealTime shopping search engine, used to help buyers compare millions of items from thousands of online stores.
Ebay listings will become part of the Shopping.com experience as users search for goods at the site. Those results will then have any available reviews from the Epinions community as well as eBay user feedback.
The deal gives eBay sellers an additional outlet for their auctions. Buyers who may be comparison shopping only and find an eBay listing for goods they want could prompt them into making a bid and subsequently a purchase.
"The acquisition of Shopping.com will allow us to provide even more opportunities for our sellers," said Bill Cobb, president, eBay North America. "Shopping.com's comparison technology simplifies the online shopping experience and the Epinions' community of reviewers is a great match with our own.
eBay has agreed to acquire all outstanding shares of Shopping.com stock for $21 per share in cash. Based on the number of Shopping.com shares outstanding on May 31, 2005, the total consideration would amount to approximately $620 million.
The deal represents a generous premium on the price per share of Shopping.com's stock. That price closed at $17.44 per share yesterday.
About the Author:
David Utter is a staff writer for WebProNews covering technology and business. Email him here.
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