Last week, the NASDAQ halted trading on the shares of TOM Online, Inc. (NASDAQ:TOMO). That's always nerve-wracking for investors. However, in the case of TOM Online, it looked like the company was going private, which of course, is a good thing.

Today, we got confirmation. TOM GROUP will indeed buy out TOM Online for about $200 million. On the news, TOM Online's stock was up 26% to $14.64. While this sounds good, let's not forget that within the last year, the stock was as high as $28.89.

Tom Online has two joint ventures with eBay Inc. (NASDAQ:EBAY) and eBay's Skype but its main business is the Chinese wireless data market. While this has lots of potential, it is still in its early stages, at least in terms of monetization. This has certainly been a problem for TOM Online.

The recent fall-off in the Chinese equities markets was not helpful either.

TOM Group already owns about 65.73% of TOM Online already, making the probablity of another bidder quite slim. In other words, it holds all the cards. The complex Chinese regulations doesn't make it easy to buy companies there either.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

TOM Online goes behind the Great Wall originally appeared on BloggingStocks on Mon, 12 Mar 2007 15:07:00 EST. Please see our terms for use of feeds.

Things weren't that pretty over at eBay Inc. (NASDAQ:EBAY) in previous quarters as eBay stock declined 34% in the past year taking it to a low of $22.83 in August. Last quarter, however, eBay charmed the Street when it reported third-quarter financial results. Even Cramer did a backflip and considers eBay a value Internet stock. The stock climbed from its August low to hover around $30 lately.

For fiscal 2006 fourth quarter, consensus analyst estimate calls for earnings of 28 cents per share, in line with the company's guidance, and up from 20 cents last year. eBay gave revenue guidance for Q4 2006 to be in the range of $1.615 billion to $1.675 billion. According to Thomson, analysts call for a 25% growth in sales to $1.67 billion.

eBay will be reporting Wednesday January 24th after the close, and I'll liveblog the webcast beginning 2 p.m. Pacific, 5 p.m. Eastern. It will be interesting to see how eBay does. Here's what analysts (and I) expect to hear:

Continue reading eBay's Q4 earnings preview: Is the magic back?

eBay's Q4 earnings preview: Is the magic back? originally appeared on BloggingStocks on Mon, 22 Jan 2007 15:25:00 EST. Please see our terms for use of feeds.

Google shifting gear in China -- buys stake in Xunlei originally appeared on BloggingStocks on Fri, 05 Jan 2007 09:31:00 EST. Please see our terms for use of feeds.

eBay's rival Alibaba to begin charging fees originally appeared on BloggingStocks on Thu, 04 Jan 2007 11:59:00 EST. Please see our terms for use of feeds.

When I had first heard about eBay Inc.'s (NASDAQ: EBAY) attempt to build an eBay branded auction platform in China I was just about screaming at my monitor, "No no no, they'll never accept you like that!!!" I knew better than to think that trying to establish an eBay branded platform would work there in any manner or fashion. The girth of my protests was documented both on eBay's discussion boards and (I believe) here on BloggingStocks comments also. Too bad Meg and crew didn't hear my pitiful whining. I could have saved them some lost time and some major bucks. Now, in a bold and somewhat clever move, eBay has purchased into a joint venture with the Chinese mobile Internet portal Tom Online Inc. (NASDAQ:TOMO). Well, better late than never!

Tom Online is a Chinese owned multimedia company that holds a leadership position in wireless Internet services. Some of the company's involvements include: wireless Internet, interactive voice response systems, online advertising, search, advanced email, gaming and entertainment. TOM Online is a subsidiary of TOM Group Limited, a leading Chinese language media group in the Greater China region. The company has a demographic focus towards the young and mobile trend seekers.

This is a move by eBay that I like.

Continue reading eBay and Tom Online, yeah I'll take a piece of that

eBay and Tom Online, yeah I'll take a piece of that originally appeared on BloggingStocks on Tue, 26 Dec 2006 10:18:00 EST. Please see our terms for use of feeds.

"If you want what you never had, then do what you have never done."

I don't know to whom to attribute that quote. It was on a T-shirt my niece was wearing when we went to her home for Christmas dinner. When I saw it, it hit me like a warm balmy breeze on a cold December day. Those are the simple words which I have never condensed into such a simple statement, yet they are representative of the dynamics which have colored my life. Yes, I'm that guy you never really got to know when you worked with him or went to school with him. I'm that guy who was "over there". I'm that guy who fights against conventional wisdom. It's not because I can't buy into the concepts of what already works. It's a matter of a bull headed refusal to be limited by a blind acceptance of the status quo. What already works isn't always good enough to satisfy me.

That's my position on eBay, Inc. (NYSE: EBAY). As a matter of fact, what already works over there doesn't seem to be working so well these days. I received an unofficial report today that as of Dec. 24, 2006, eBay listing count has dropped below 10 million. If that's true, it equals an over 30% decrease of average listing volume in the last quarter. This does somewhat mimic historical performance over the last three years.The most up-to-date figures that I can get which I trust are from medved up to Dec. 16, which show eBay listing volume at about 14.3 million on that date. In any case, based on my tracking of the numbers, things aren't really too good on eBay for overall listing quality and volume. The numbers over the next 30 days will tell the story as to the true effects of the eBay "revolutionaries" on that site and their future. If there is not a significant jump in listing volume beginning in January, be ready for some heads to roll.

Continue reading How should eBay grow now?

How should eBay grow now? originally appeared on BloggingStocks on Sun, 24 Dec 2006 17:27:00 EST. Please see our terms for use of feeds.

According to sources, no job cuts are planned, furthering the idea that this move is a strategic shift aimed at strengthening operations in China, not an exit strategy. This isn't another Japan where eBay bowed out to Yahoo! Japan.

Continue reading eBay & Tom.com -- good or bad move?

eBay & Tom.com -- good or bad move? originally appeared on BloggingStocks on Tue, 19 Dec 2006 14:40:00 EST. Please see our terms for use of feeds.

eBay Inc. (NASDAQ:EBAY) has decided to get out of China, at least in terms of operating its own local language site [subscription required, alternate]. Chinese who buy from eBay sites outside the country will still deal with eBay.

Chinese portal Tom Online will operate a new auction site that will be a joint venture with eBay. Tom will own 51%.

The Wall Street Journal said that the move is a defeat for eBay. That is short sighted. Tom has a significant presence in China and knows the local markets. Half a loaf is better than none.

There is a wisdom in eBay's decision, and it will probably be evident fairly quickly.

Douglas A. McIntyre is a partner at 24/7 Wall St.

eBay pulls the China plug originally appeared on BloggingStocks on Tue, 19 Dec 2006 09:21:00 EST. Please see our terms for use of feeds.