eBay Repatriated a Ton of Cash, Here's Why It Matters: StockTwits

NEW YORK (TheStreet) -- eBay (EBAY) has turned into a battleground stock over the last several months.

Carl Icahn even went after the stock. He called for a spinoff of Paypal. 

eBay's stock has been range bound for 1.5 years now. Largely fluctuating between $50 and $60 a share:

$EBAY trading in a 12$ range for 1.5yrs. break below 48 givs much ammo to the split off paypal crowd http://stks.co/b0Um3

- Phil Pearlman (@ppearlman) Apr. 30 at 09:43 AM

But the most interesting thing happening at eBay right now is its announcement to repatriate some of the cash it holds overseas:

$EBAY repatriating cash to increase financial flexibility for "growing opportunities in the US." But not announcing any major deals.

- Ned Graham (@nedgraham) Apr. 29 at 05:23 PM

It's estimated that multinational U.S. companies hold more than $2 trillion in accounts that are maintained in places like the Cayman Islands.

What will eBay do with its cash? No one knows just yet, but it is a development that has to be watched for several reasons. The cash, for example, could be used to fund a major acquisition. The Street's Antoine Gara wrote about some of the possibilities in his post eBay Tax Hit: Ray of Hope or Storm Cloud for Silicon Valley? 

It'll send Silicon Valley into a euphoric frenzy if eBay uses its funds to acquire Pinterest or AirBnB or Square. A development like that would have wide-ranging implications on the entire stock market, too. It would most likely send tech valuations even higher than they are now.

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