Will the Braintree Acquisition Increase Ebay Inc (NASDAQ:EBAY)’s Reach
EBay Inc (NASDAQ:EBAY) will buy Braintree for approximately $800M. The company is in an effort to
add some impetus to its PayPal business. EBay Inc (NASDAQ:EBAY) will acquire Braintree and it will operate as a larger company in the online payment space.
As per the company’s statement, Braintree will operate as an independent entity within PayPal. Bill Ready, the Braintree CEO will be the Chief Executive officer of the new company. Braintree operates in the U.S with a staff of 180 employees and provides services such as online credit-card payment as well as mobile payments. In addition, they provide services like credit-card storage, merchant account and payment gateway.
Users are able to transfer money via their smartphones or PC’s though eBay’s PayPal service. They will be charged either on their bank accounts or credit cards. John Donahoe,
eBay Inc (NASDAQ:EBAY)’s CEO said that the Braintree acquisition fits in perfectly in the PayPal mould. PayPal is also in expansion mode and is now targeting a much bigger offline market. It is finding new methods via which consumers can be encouraged to transact via their PayPal accounts in place of using debit or credit cards. This deal was expected to close in the Q4.
Thursday’s trading session
EBay Inc (NASDAQ:EBAY) is a global technology-company. It enables commerce via 3 reportable segments: 1) Marketplaces, 2) Payments, and 3) GSI.
In Thursday’s trading, eBay Inc (NASDAQ:EBAY) DROPPED BY 1.29%. The shares opened at a price of $55.50, climbed to an intraday high of $55.77 and dipped to a close of $54.91. Approximately 6.70 million shares were traded on Thursday while an average volume of 8.59 million shares were traded over a 30 day period. The 52-week low of the company’s shares is $45.66 and its 52-week high is $58.04. The company has a market capitalization of $71.08 billion.