No terms of the deal were announced, and the only confirmation of the sale comes from Italian newspapers that talked to the startup's co-founders. According to TechCrunch, it's not clear if any of the team behind Gopago will make the transition to Amazon. The acquisition is seemingly more about the technology behind Gopago instead of the people who created it.
Amazon reportedly will use the start-up's technology as part of an "ambitious new project." It's possible that Amazon could use the technology for a mobile payment system that will rival Square. Such a service would also compete with eBay's (EBAY) PayPal, which recently launched its own Bluetooth-based mobile payments system.
Amazon shares were down 0.3% on Tuesday to $387.83.
TheStreet Ratings team rates AMAZON.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about its recommendation:
"We rate AMAZON.COM INC (AMZN) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."