14 DAY TRIAL // eBay is probably the most popular e-commerce service on the internet, allowing millions of users to buy all kinds of products using a powerful bid system. The solution is based on a community of users that are looking to sell their stuff and posted a message with details about their product and price. Then, potential clients are bidding for the product or they can buy it at the original price fixed by the seller. This way, any user from the entire world can buy anything at low prices directly from another user of the eBay service.
eBay is not only one of the most popular solutions on the internet, but it is also one of the most secure because it allows users to do safe transactions. It seems like the owners are looking to expand the area of their products, deciding to buy a company that will enable it to sell events tickets using their online service.
"eBay Inc. today announced it has agreed to acquire privately held StubHub, a leading online marketplace for the resale of event tickets. The acquisition will enable eBay to expand its presence and offering in the online tickets segment, while allowing StubHub to continue to scale its business with the e-commerce expertise and resources of eBay.
This acquisition -- which is subject to regulatory approval and approval of StubHub's stockholders, among other conditions -- is expected to close in the first quarter of 2007. Information relating to the impact of this acquisition on eBay's 2007 financial guidance will be provided on the next quarterly earnings conference call scheduled to take place Jan. 24," it is mentioned in the press release.
Multiple users tried to mention a reason that made eBay acquire this service, saying that the acquisition is more expensive than to release its own service to provide the same features as StubHub. It's obvious that it's easier for eBay to buy a company that already owns a huge number of clients than to develop a service and advertise it on its official webpage.