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eBay acquires Bill Me Later, lays off 1,000 workers

2008-10-07 15:02:52 (GMT) (Caymanmama.com - Business News)

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Reno, Nevada (CaymanMama.com) — Reports of buyouts and company acquisitions are running rampant in recent headlines and Monday’s headlines are no different. According to a report by Cnet.com, eBay will be releasing approximately ten percent of its workforce and its third quarter results will not reflect the higher end of projected expectations.

eBay also announced on Monday that it has plans to buy online payment company Bill Me Later at the price of $820 million along with nearly $125 million in outstanding options. Additionally, they are looking into adding Danish classifieds specialist Den Bla Avis and vehicle site BilBasen to their shopping cart for approximately $390 million.

Adding to the raising unemployment rates, eBay will cut nearly 1,000 jobs. This layoff in workforce will end up in a pretax restructuring charge of between $70 million and $80 million, which will be taken in the fourth quarter of 2008, eBay said. The company, a leading online retailer and auction website, will lay off several hundred temporary staff and lower the amount of open positions available.

The report states, “The company, scheduled to report third-quarter results on October 15, said on Monday that it expects to hit the low end of its revenue guidance, and exceed GAAP and non-GAAP earnings per share. eBay said in July that it expected net revenues of between $2.1 billion and $2.15 billion for the third quarter, with GAAP earnings per diluted share of between 30 cents and 32 cents per share, and non-GAAP earnings per diluted share of between 39 cents and 41 cents per share.”



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