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    EBay sells Enterprise unit, tops profit expectations

    By SHOOTUpdated:No Comments904 Views
    This July 2013 file photo shows an EBay sign at the company's headquarters in San Jose, Calif. (AP file photo)
    SAN JOSE, Calif. (AP) --

    EBay sold its Enterprise business for $925 million and topped Wall Street expectations for its second-quarter earnings as the online retailer prepares to spin off PayPal.

    Shares rose more than 4 percent in morning trading Thursday.

    EBay had said in January that it might sell Enterprise, which develops online shopping sites for brick-and-mortar retailers. Clients include Sports Authority, PetSmart and Ikea. Earlier this month one of its biggest clients, Toys R Us, said that it would move its ecommerce business in house next year.

    But that didn't stop the sale to a group of private equity firms led by Permira and Sterling Partners, the company announced Thursday.

    EBay Inc., based in San Jose, California, also reported quarterly net income of $83 million, or 7 cents per share. Adjusted earnings, excluding a $786 million charge related to the Enterprise sale, amounted to 76 cents per share. That was 4 cents better than analysts had projected, according to a survey by Zacks Investment Research.

    The e-commerce company posted revenue of $4.38 billion in the period. Including revenue from its discontinued enterprise unit, however, revenue totaled $4.65 billion. Thirteen analysts surveyed by Zacks expected $4.48 billion. EBay cited the stronger dollar.

    EBay expects full-year earnings in the range of $1.72 to $1.77 per share.

    Shares rose $2.66, or 4.2 percent, to $66.10 in morning trading.

    Tags:eBay



    DirecTV calls off acquisition of rival Dish, possibly ending a yearslong pursuit

    Friday, November 22, 2024
    Dish Network satellite dishes are shown at an apartment complex in Palo Alto, Calif., Feb. 23, 2011. (AP Photo/Paul Sakuma, File)

    DirecTV is calling off its planned acquisition of rival Dish after the offer was rejected by bond holders at that company.

    The deal was reliant on Dish bond holders agreeing to trade in the debt they held for debt in the new company, a swap that would have cost them about $1.6 billion, collectively.

    The retreat by DirecTV this week may end a years-long effort by the company to acquire both Dish and Sling after it announced the bid in September.

    DirecTV was looking to acquire Dish TV and Sling TV from its owner EchoStar in a debt exchange transaction that included a payment of $1, plus the assumption of approximately $9.8 billion in debt. The deal was contingent on several factors, including regulatory approvals and bondholders writing off debt related to Dish.

    "While we believed a combination of DirecTV and Dish would have benefited all stakeholders, we have terminated the transaction because the proposed exchange terms were necessary to protect DirecTV's balance sheet and our operational flexibility," DirecTV CEO Bill Morrow said in a statement.

    The prospect of a DirecTV-Dish combo has long been rumored, and reported talks resurfaced over the years. And the two almost merged more than two decades ago — but the Federal Communications Commission blocked the deal valued at the time at $18.5 billion deal, citing antitrust concerns.

    The pay-for-TV market has shifted significantly since. As more and more consumers tune into online streaming platforms, demand for more traditional satellite entertainment continues to shrink.

    DirecTV says that it will continue to invest in next-generation streaming platforms and offer new packaging options while integrating content from live TV alongside direct-to-consumer... Read More

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