SAN JOSE, Calif.--(BUSINESS WIRE)--
eBay Inc. (NASDAQ: EBAY) today announced it completed its previously
announced acquisition of Braintree, the innovative global payment
platform powering the next generation of leading online and mobile-first
startups. In accordance with the terms of the acquisition agreement
announced September 26, 2013, eBay acquired Braintree for total
consideration of approximately $800 million in cash.
Braintree will now operate as a separate service within PayPal under the
leadership of Braintree CEO Bill Ready, who will report to PayPal
President David Marcus and has joined PayPal's executive staff.
Braintree has become the payment platform of choice for next-generation
innovators like Airbnb, OpenTable, HotelTonight and Uber, transforming
consumer experiences through mobile devices. PayPal plans to integrate
with Braintree only in ways that will benefit customers and support
Braintree's growth.
Venmo, Braintree's mobile application that gives people an easy way to
pay each other using their mobile devices and leveraging social
networks, is part of the acquisition and will remain a separate app.
PayPal and Braintree are now focused on transforming the mobile payments
space together. By combining efforts, we believe Braintree will
accelerate PayPal's strong presence in mobile payments, while PayPal
will propel Braintree forward at a faster pace with its resources and
global scale.
eBay anticipates the acquisition will have an immaterial impact to
PayPal's 2013 net total payment volume. eBay expects that definitional
differences between PayPal's net total payment volume and Braintree's
projected $12 billion payment volume for 2013, approximately one-third
of which is expected to be driven by mobile payments, will lead to a
significant portion of Braintree's payment volume not being additive to
PayPal's net total payment volume and treated instead like PayPal's
payment gateway business, with only the revenue being recorded. The take
rate associated with Braintree's payment volume varies significantly
based on business mix. eBay expects the acquisition to be immaterial to
its 2013 revenue guidance which it announced October 16, 2013, and due
to timing to have an immaterial impact to its 2013 non-GAAP EPS guidance
and a negative impact of $0.01 - $0.03 to its 2013 GAAP EPS guidance.
About eBay Inc.
eBay Inc. (NASDAQ: EBAY) is a global
commerce and payments leader, providing a robust platform where
merchants of all sizes can compete and win. Founded in 1995 in San Jose,
Calif., eBay Inc. connects millions of buyers and sellers and enabled
$175 billion of commerce volume in 2012. We do so through eBay, the
world's largest online marketplace, which allows users to buy and sell
in nearly every country on earth; through PayPal, which enables
individuals and businesses to securely, easily and quickly send and
receive digital payments; and through eBay Enterprise, which enables
omnichannel commerce, multichannel retailing and digital marketing for
global enterprises in the U.S. and internationally. We also reach
millions through specialized marketplaces such as StubHub, the world's
largest ticket marketplace, and eBay classifieds sites, which together
have a presence in more than 1,000 cities around the world. For more
information about the company and its global portfolio of online brands,
visit www.ebayinc.com.
About PayPal
PayPal is the faster, safer way to pay and get
paid online, via a mobile device and in store. The service gives people
simpler ways to send money without sharing financial information, and
with the flexibility to pay using their account balances, bank accounts,
credit cards or promotional financing. With 137 million active accounts
in 193 markets and 26 currencies around the world, PayPal enables global
commerce, processing almost 8 million payments every day. Because PayPal
helps people transact anytime, anywhere and in any way, the company is a
driving force behind the growth of mobile commerce and expects to
process $20 billion in mobile payments in 2013. PayPal is an eBay
(Nasdaq: EBAY) company and contributed 40 percent of eBay Inc.'s
revenues in 2012. PayPal is headquartered in San Jose, Calif. and its
international headquarters is located in Singapore. More information
about the company can be found at www.paypal-media.com.
About Braintree
A catalyst for the next generation of
commerce, Braintree's global payment platform expects to process
approximately $12 billion in payment volume in 2013 for thousands of
online and mobile commerce innovators including Airbnb, Fab,
LivingSocial, OpenTable and Uber. Merchants in more than 40 countries
across North America, Europe and Australia can accept payments in more
than 130 currencies using Braintree. Today, Braintree powers
single-click purchasing for more than 40 million consumers and its
mobile app, Venmo, gives people an easy way to pay using their mobile
devices. To learn more, visit Braintree at www.braintreepayments.com
and on Twitter @braintree.
Forward-Looking Statements
This announcement contains
forward-looking statements, including statements about the expected
impact of the Braintree acquisition on PayPal's and eBay's financial and
operating results and business, the operation, management and
integration of Braintree after acquisition, PayPal's projected mobile
payments volume, and Braintree's projected payments volume and mobile
payments volume. These forward-looking statements involve risks and
uncertainties, and actual results could differ materially from those
discussed. Factors that could cause or contribute to such differences
include, but are not limited to, the reaction of Braintree's customers
and merchant and gateway partners to the transaction, PayPal's plans for
Braintree, the future growth of Braintree's and PayPal's businesses, the
reaction of competitors to the transaction and the possibility that
integration following the transaction may be more difficult than
expected. More information about potential factors which could affect
our business and results is included in eBay's Annual Report on Form
10-K for the year ended December 31, 2012, its Quarterly Reports on Form
10-Q, its Current Reports on Form 8-K, and other periodic filings. All
forward-looking statements are based on information available to eBay on
the date hereof, and eBay assumes no obligation to update such
statements.
eBay Inc.
Investor Relations Contact:
Tracey Ford
tford@ebay.com
or
Media
Relations Contact:
Jennifer Hakes, 408-967-4309
jehakes@paypal.com
or
Media
Relations Contact:
Brian Sinderson, 415-602-9975
brian.sinderson@mslgroup.com
or
Investor
Information Request:
408-376-7493
Company News:
http://www.ebayinc.com/news
Investor
Relations website:
http://investors.ebayinc.com
Source: eBay Inc.
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