eBay to Buy Shopping.com
- Loading Comments...
Updated from 6:13 p.m. EDT
In a move that gives its network of small retailers deeper access to Internet searches, eBay(EBAY Quote) is buying Shopping.com(SHOP Quote) for $620 million in cash.
Mountain View, Calif.,-based eBay will pay $21 a share for Shopping.com, a company based in Brisbane, Calif., that specializes in comparison-shopping. Shopping.com closed Wednesday trading at $17.44, up 2.2% for the day, so eBay is paying at least a 20% premium over the value the market most recently gave to the company.
The $620 million price tag is 4.7 times Shopping.com's estimated sales for 2005 and 4.4 times Shopping.com's cash, cash equivalents and marketable securities as of May 31. By comparison, the $1.85 billion that IAC/InterActiveCorp(IACI Quote) is paying for search engine Ask Jeeves(ASKJ Quote) is 4.8 times Ask's estimated 2005 revenue. ...
Recent Comments
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,309.92 | 1,091.49 | 2,138.44 | 32.31 |
Oil *
77.12
|
|
DOWN
154.48
|
DOWN
19.14
|
DOWN
37.61
|
DOWN
0.48
|
10 Yr
3.23%
SPDR Gold
115.06
|
|
-1.48%
|
-1.72%
|
-1.73%
|
-1.46%
|
Data delayed 20 minutes |
Connect with TheStreet