eBay Inc. Tuesday unveiled plans to make it easier for its nearly four million members to buy and sell online. The world’s largest online person-to-person trading community announced it will purchase Billpoint, Inc. Billpoint, located in Redwood City, California, facilitates person-to-person credit card payment over the Internet.
“We are committed to providing the eBay community with the simplest and easiest way to trade online,” said Meg Whitman, president and chief executive officer of eBay. “Streamlining person-to-person trading is a core part of our strategy and Billpoint will offer shoppers a convenient and easy-to-use payment solution that will serve the needs of the eBay community at large.”
“eBay is a recognized leader in person-to-person commerce,” said Hope X. Chen, Billpoint’s co-ceo and chief operating officer. “Billpoint will simplify auctions by making payments a seamless and integrated part of the trading experience.”
As the pioneering online person-to-person payment enabler, Billpoint will eliminate the difficulties of dealing with paper checks and money orders. Sellers will use Billpoint to instantly accept credit cards and other forms of payment online. Buyers will use Billpoint to “buy with peace of mind.” Billpoint plans to make its services available to other e-commerce sites and to individuals across the Internet.
eBay said that the agreement to purchase Billpoint and the purchase of Kruse International, a second transaction announced today, will together result in the issuance of eBay common stock worth approximately $275 million. Both will be accounted for as pooling of interest transactions. The number of shares to be issued in the transactions will be determined by a formula involving the average share price of eBay common stock during a period prior to the closing of the transactions. eBay expects that the transactions may be slightly dilutive during the remainder of 1999. Closing is subject to certain conditions, and eBay may recognize certain one-time expenses related to the transactions in the second quarter. Both transactions are expected to close during the second quarter of 1999.
This announcement contains forward-looking statements that involve risks and uncertainties, including those relating to the closing of this transaction. Actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, stock price movements, the Company’s ability to integrate these new businesses and all of the factors that may influence future business and financial results, including those set forth in the Company’s Form 10-K for the period ended December 31, 1998, its form 10-Q for the period ended March 31, 1999 and the Company’s prospectus on Form S-1 dated April 12, 1999. All forward-looking statements are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such statements.
eBay (), the world’s personal trading community(TM), pioneered person-to-person online trading. Founded in 1995, eBay has developed an efficient and entertaining trading site on the Web that is available 24 hours a day, seven days a week. eBay has more than 3.8 million registered users and over 8 million unique people visited the site in March. Currently, there are more than 1.8 million items listed for sale. More than 250,000 items are added daily in more than 1,500 categories, including: antiques; books, movies and music; coins and stamps; collectibles; computers; dolls and figures; jewelry and gemstones; photo and electronics; pottery and glass; sports memorabilia; and toys.
Billpoint () facilitates person-to-person credit card payments over the Internet. Addressing the growing needs of auctions, classifieds and community sites, Billpoint empowers the entrepreneur in all of us by simplifying online payment collection. Billpoint, founded in 1998, is located in Redwood City, California. The company’s management team brings significant expertise from both the Internet portal environment and the electronic payments industry.Details