Adding to earlier rumored possibilities I outlined this morning about eBay China's fate, AuctionBytes now adds another.
Up to now we had the two possibilities of eBay China being sold to either Tencent or Tom.com. AuctionBytes quotes Pacific Epoch, adding a third possibility of eBay actually negotiating the acquisition of Tencent, rather than the other way around.
This makes a little more sense to me as I don't see eBay Inc. (NASDAQ: EBAY) just giving up on the whole Chinese market and withdrawing altogether from it by selling its operations there.
Looking at today's share price, eBay shares are up over 3.5%. The increase in share price could be attributed to a Goldman Sachs bullish note on eBay. Goldman lowered its eBay target price from $54 to $35, but reiterated its "Buy" rating on eBay at the same time. While Goldman is bullish, others predict eBay's Q3 to be "less-than-stellar."
Could eBay shares be up 3.5% solely on a Goldman note, or is there anything behind the rumors? And if so, what?
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Reader Comments (Page 1 of 1)
9-26-2006 @ 2:09PM
Gary E. Sattler said...
The only thing I can say for sure on eBay stock is this:
EBAY INVESTORS SUPPORT CHANGE!!!
Let's GEET 'ER DUN!!!
Gary
9-26-2006 @ 2:29PM
Alex said...
Here's another article on exactly the same 'rumors'...
http://bbb.typepad.com/billsdue/2006/03/tom_and_ebay_fo.html
...from March 2006.
9-26-2006 @ 2:42PM
Melly said...
Alex, this is so typical, isn't it?
Every so often rumors pop up and die down (or not), only to pop up again a few months later.
For now, that's indeed all it is - rumors.
9-26-2006 @ 4:30PM
Alex said...
Hi Melly, its a strange coincidence that these rumors seem to pop up in times of crisis (i.e. when shares are at a low). I'm not suggesting for one moment that we're witnessing 'pump and dump' tactics here; that would be illegal. We all know that Ebay strive their very best not to facilitate any unlawful activities.
9-27-2006 @ 9:45AM
Brian Snale said...
Alex's comment "We all know that Ebay strive their very best not to facilitate any unlawful activities." to quote a certain tennis player 'You cannot be serious'. Ebay shows no interest in preventing illegal activities as can be patently seen by their inaction with regard to fraud on the site.
Whilst it would be foolish to claim they were manipulating the stock price, I would trust them about as much as I would trust the Iraqi Informatiion Minister from the Saddam regime!
I still see no upside for this company until they sort out the fraud issues, as it is destroying buyer confidence. Whilst if the China rumours are true, it prevents more losses, this does not address the companies fundamental problems.
9-27-2006 @ 3:58PM
Joyce said...
The Chinese Connection..
It may have something to do with this July article..?
http://www.out-law.com/page-7147
I've wondered about this since I first read it. Yahoo has 40% of Alibaba.
But ebay seems to fully own Eachnet.
This article says that:
"The World Trade Organisation insisted that China open up its market to international companies. China capped foreign involvement at 50% as a concession."
"Foreign companies must already allow Chinese investors to own 50% of all ventures in the country,
and the Government has begun to make announcements hinting that it will further restrict trade."
Is this true?
If the Chinese Government has "capped foreign involvement at 50%".. How is it that ebay owns ALL of Eachnet?