Daily Management Review

NYSE owner to buy eBay for $ 30 billion


ICE, the owner of the New York Stock Exchange, has made an offer to purchase an eBay online marketplace, WSJ sources said. As part of the deal, eBay could be valued at more than $ 30 billion.

Ivan Radic via flickr
Ivan Radic via flickr
Intercontinental Exchange (ICE), which owns the New York Stock Exchange, has made an offer to purchase the Internet giant eBay, The Wall Street Journal reported, citing informed sources. As part of the deal, the company could be valued at more than $ 30 billion, the newspaper said. Price implies a premium - eBay now has a market value of over $ 28 billion.

ICE has contacted eBay several times, WSJ interlocutors said. Now companies are not formally negotiating, and there is no guarantee that the transaction will be concluded. ICE is interested in the key business of the company, online marketplace, the sources said. EBay also has a “secret division”, which the company was discussing the sale of the company, the newspaper writes. It may cost about $ 10 billion, the source said.

In response to an article on the deal, ICE issued a press release published by the Associated Press. The company said it had indeed turned to eBay to explore the “range of opportunities” that could be beneficial to the “shareholders of both companies.” In response, the Internet giant did not “make a significant contribution” to the negotiations, the message said.

EBay is an e-commerce pioneer facing stiff competition from companies like Amazon, WSJ said. The company seeks to distance itself from the reputation of the online auction, since such sites are losing popularity, and become known as the electronics marketplace.

ICE owns not only the New York Stock Exchange, but also the London International Petroleum Exchange and the Chicago Stock Exchange. In addition, the company owns a business in the field of financial data and clearing centers for trading derivatives. According to WSJ, interest in eBay is unusual for a company that, over the 20 years of its existence, has preferred to buy platforms for trading financial instruments, rather than consumer goods.

source: wsj.com