A Bloomberg report over the weekend quoted unnamed sources as saying that eBay Inc (NASDAQ: EBAY) had received bids for its Classifieds business from multiple bidders, in the range of $8 billion to $10 billion.A bid in this range is a financial positive for eBay given the issues at Classifieds this year, according to BofA Securities.The eBay Analyst Justin Post maintained a Neutral rating on eBay with a $44 price target.The eBay Thesis Assuming a premium multiple for Classifieds, given its high margin profile, the segment's valuation comes to $8.3 billion, which is at the lower end of the reported bids, Post said in a Wednesday note. (See his track record here.)A valuation of $8.3 billion for Classifieds implies a 21x multiple on BofA's 2021 profit estimate of $389 million, the analyst said, adding that a 21x segment multiple is in-line with the higher end of recent transactions in the classifieds space.Classifieds could face pressures in 2020 due to COVID-19. On the other hand, the pandemic could also impact the availability of credit to finance large acquisitions, Post said. "We would view a potential sale of Classifieds between $8-10bn as positive for the stock, all else equal, given issues for Classifieds in 2020 and implied residual core eBay valuation."EBAY Price Action Shares of eBay were trading down 0.66% at $43.08 at the time of publication Wednesday.Related Links:In Consumers We Trust: 3 Leveraged ETFs That Surged In AprilFacebook's New Shopping Feature Lifts Stock To All-Time HighsLatest Ratings for EBAY DateFirmActionFromTo Apr 2020SunTrust Robinson HumphreyMaintainsHold Apr 2020SusquehannaMaintainsPositive Apr 2020BMO CapitalMaintainsOutperform View More Analyst Ratings for EBAY View the Latest Analyst Ratings See more from Benzinga * Piper Sandler Downgrades Twilio On Near-Term Revenue Risk(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
EBay (EBAY) closed at $44.15 in the latest trading session, marking a +1.82% move from the prior day.
Investors reacted strongly to the company’s announcement of a new e-commerce platform called Facebook Shops, and a similar program to launch later this year called Instagram Shops.
One of the UK's most senior naval officers has been brought in to help lead the government’s efforts to address shortages of personal protective equipment for health workers. Jim Higham, assistant chief of the naval staff, is working with Paul Deighton, chief executive of the London 2012 Olympics organising committee, who was asked last month to oversee Britain’s production of PPE for NHS and care workers. Health and social care staff have repeatedly complained they have insufficient PPE to do their jobs safely, with families of some who lost their lives blaming shortages for their deaths.
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PayPal stock is up more than 36% year to date, scored its largest ever single-day volume May 1, and was passing another buy point on Monday.
One catalyst for eBay shares could be the sale or spinoff of its classified-advertising business, which the company has been shopping around, notes Baird’s Colin Sebastian.
In the latest trading session, eBay (EBAY) closed at $42.47, marking a -0.56% move from the previous day.
The number of deaths from the coronavirus that causes COVID-19 rose above 353,000 on Wednesday, as the World Health Organization said the Americas are at the center of the pandemic following surges in infections in Brazil, Peru, Chile and others in the past few days.
Q1 2020 eBay Inc Earnings Call
Axel Springer, the German media group backed by private equity firm KKR, has submitted an initial bid for eBay’s classifieds business, according to people familiar with the matter, as the ecommerce group embarks on one of the biggest sale processes since the outbreak of the coronavirus pandemic. The publisher of Die Welt and Bild and its US backer will face competition from groups including South African ecommerce group Naspers, the classified group Adevinta, which owns the Shpock platform, and a private equity consortium of Hellman & Friedman, Blackstone and Permira, the people said.
(Bloomberg) -- South Africa’s Naspers Ltd. and an investor group backed by German publisher Axel Springer SE are among suitors that submitted bids for EBay Inc.’s classified-advertising business, according to people familiar with the matter.Axel Springer teamed up with KKR & Co. for its offer, according to the people, who asked not to be identified because the information is private. Online classifieds company Adevinta ASA also made a bid for the unit by this week’s deadline, the people said. A consortium of Blackstone Group Inc., Permira and Hellman & Friedman has also been pursuing the business, the people said.The unit could fetch $8 billion to $10 billion, according to one of the people. EBay could decide as soon as next week which suitors advance to the next round, the people said.EBay shares rose 2.3% in New York Friday, valuing the company at about $30.5 billion.A potential sale of EBay’s classifieds unit could rank among the largest deals in Europe involving private equity firms this year. EBay is seeking a sale of the business at a time when market turmoil has hampered financing for leveraged buyouts, forcing companies to put a number of bidding processes on hold. Walmart Inc. paused the sale of a majority stake in its U.K. grocery chain Asda to focus management’s attention on running the business amid unprecedented spikes in demand driven by the coronavirus.Representatives for EBay, Adevinta, Axel Springer, Blackstone, KKR, Naspers and Permira declined to comment. A spokesperson for Hellman & Friedman didn’t immediately respond to a request for comment.EBay said in February it was in talks with multiple parties about a sale of the business and expected to update investors by the end of the first half. While the San Jose, California-based company reported better-than-expected sales in the first quarter, the classifieds unit dragged on results as the Covid-19 pandemic forced the closure of car dealerships.EBay’s classified business has attracted interest from several strategic and private equity firms, Dealreporter and The Wall Street Journal have previously reported, citing unidentified people. Permira partially owns Polish online auction site Allegro. Hellman & Friedman is a backer of digital car marketplace Autoscout24 GmbH.E-commerce group Naspers, Africa’s largest company by market value, is seeking to boost its portfolios in classifieds, food delivery and digital-payments businesses as well as education, Chief Executive Officer Bob Van Dijk said in an interview this month. The company acquires online companies around the world through Amsterdam-listed Prosus NV, which the company spun off in September last year.German publisher Axel Springer has ramped up its hunt for deals to accelerate a shift into digital media since agreeing to go private with the help of KKR last year.Norway’s Adevinta was spun off of Scandinavian media conglomerate Schibsted ASA last year with the goal of expanding in the global online classified market.(Updates with details on Axel Springer and Adevinta in last two paragraphs)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Online retail sales have been gaining traction for some time now which received further boost amid the coronavirus pandemic.
(Bloomberg) -- With online shopping increasing amid Covid-19 lockdowns, the U.K.’s competition regulator is clamping down on fake and misleading reviews on popular shopping websites.The Competition and Markets Authority said Friday it’s probing several major websites to see if they are doing enough to protect shoppers. It will examine how these sites detect, investigate and respond to suspicious reviews.So far, the CMA has not singled any companies out and isn’t alleging that any website has acted illegally. The watchdog said it may resort to legal action if online platforms don’t do what’s required to protect consumers.With consumers stuck at home amid the coronavirus pandemic, retail websites have been the go-to for most products. Amazon.com Inc. has seen a spike in sales since lockdowns began and has had to hire 175,000 people to cope with demand. Last year it responded to criticism by changing how it displays feedback by prioritizing ratings from customers rather than reviews.Amazon said in an e-mailed statement it’s “happy to assist the CMA” with its inquiries.“Customer trust has always been at the heart of our approach and we want to ensure you can shop with confidence knowing that reviews are authentic and relevant,” it said. “We welcome the fact that the CMA shares our view on the importance of robust mechanisms to tackle attempted abuse of customer reviews.”EBay Inc. said it’s “committed to cooperating with the CMA on any investigation to tackle fake reviews.”Instagram CommitmentsThe CMA’s probe comes the same day it secured commitments from Facebook Inc.-owned Instagram to tackle the risk that users can buy and sell fake reviews through the social media platform. Instagram has committed to providing more robust systems to detect and remove such material, the regulator said. Facebook and EBay have also previously assured the regulator it would put measures in place to tackle the issue.“During lockdown, we’re more dependent than ever on online shopping, so it’s really important that the online reviews we read are genuine opinions,” said Andrea Coscelli, chief executive officer of the CMA.(Updates with Amazon, EBay responses starting in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
For motorsports fans, Memorial Day Weekend can mean only one thing: the Indianapolis 500. This year, though, the Indy 500 will run instead in August, due to the coronavirus. Kicking off with the most famous words in motorsports, "Drivers, start your engines!" the racers take to the track behind the pace car.
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In this article we will check out the progression of hedge fund sentiment towards eBay Inc (NASDAQ:EBAY) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and 20 […]