Daily Management Review

PayPal to Spend $ 6 Billion on the Uptake


07/06/2015


International payment system PayPal, which is used by millions of people around the world to carry out online shopping, is itself planning a large-scale shopping. The company intends to spend $ 6 billion on utility assets.



Such an approach, according to representatives of PayPal, will allow the company to stimulate the growth of the business and to resist competitor activity.

In an interview with The Financial Times PayPal President Dan Schulman said that the new strategy is a priority. PayPal will get the budget for the program of $ 6 billion as a result of separation from eBay.

- The balance of the company allows us to target the rational acquisition. I think we have the world-class potential, - said Shulman, adding that a strong balance sheet is supported by lending programs.

At the beginning of July 2015, PayPal has announced the largest purchase in its history. The company intends to acquire the services of international money online transfers Xoom for $ 890 million. The transaction is expected to be closed in the final quarter of this year. In view of this absorption, PayPal will have additional $ 5 billion in other assets.

Earlier this year, the online auction site eBay announced a restructuring in which the payment system PayPal has been singled out as a separate company. Before that, last fall, the board decided that the co-administration of eBay and PayPal units will have a negative impact on each of them in terms of strategy development and competitiveness after 2015.

As a result, Dan Shulman, who was responsible for business development at American Express, got the position of the head of the new company. According to Wedbush analysts, PayPal market value is about $ 40 billion, or about two-thirds of eBay’s value.

For comparison, the financial arm of Chinese Internet giant Alibaba Group Holdings is estimated at $ 45-50 billion.

In I quarter 2015, revenues of PayPal for the first time in history was greater than that of eBay Marketplace (unites such sites as eBay, Shopping.com, StubHub, eBay Classifieds and other e-commerce sites): $ 2.11 billion versus $ 2.07 billion . The number of users of the payment system in this period reached 165 million people, which is 11% more than the year before.

In October-December, 2014, PayPal increased its revenue by 16% to $ 2.163 billion. Net payments made through PayPal grew 24%, amounting to about $ 64.3 billion. For three months, 4.6 million new active accounts have been registered in the system, and the number of users at the end of 2014 reached 162 million.

In 2014, still together with PayPal, eBay noted a net loss of $ 41 million against a profit of $ 2.856 billion a year earlier. At the same time, adjusted earnings increased by 5% to $ 3.729 billion, or $ 2.95 per share. Revenue increased by 12%, exceeding $ 17.9 billion.

source: ft.com






Science & Technology

Germany Plans On Cyber Security Research To End Reliance On U.S. Tech

Fuchsia will kill Android by 2023: Top 5 facts about the new OS

New Study Finds Goats Interact More With Happy People

More than 32 thousand "smart" houses under threat of hacker attack

Internet addiction and children: Global plague

Apple takes up to develop Apple Watch for health monitoring

Hyperloop is growing in Europe

Analysts: US gamers prefer mobile games

Google Assistant Winner Of Head-To-Head Test Of Digital Assistants, Beats Siri And Alexa

Animals Can Burn Muscle To Supplement Body Water Needs, Finds A Study

World Politics

World & Politics

10 countries with the best healthcare systems

Foreign Experts To Be Allowed By North Korea For Permanent Destruction Of Missile Sites

Ireland recovers €14.3 billion from Apple

Is China going to cancel its birth limit policy?

The US is ready to start negotiations with China

US and China start 5G race

Is Czech Republic posing a threat to the European Union?

Myanmar Military Top Brass should be investigated and prosecuted for genocide: UN