It’s a big day for eBay and CEO Jon Donahoe. The company is laying off 10% of its workforce, or about 1,000 employees plus several hundred temporary positions. They will take a $70 million to $80 million restructuring charge around the layoffs, they said.
Regarding the two acquisitions: We covered dba.dk, Denmarks’ leading classifieds site, earlier this morning. Bill Me Later, the larger acquisition, is a service that let’s ecommerce partners issue instant credit to buyers. You enter your birth date and last four digits of your social security number online, and it does a credit check on you in three seconds to determine whether you are worth the risk. Bill Me Later pays the merchant, and sends you a bill. The company has raised a ton of cash – at least $272 million – from Amazon, Azure Capital Partners, Chase Paymentech, Crosspoint Venture Partners, First Data Corp., and others.
eBay stock is at a 52 week low, we’ll see how it does in the market today. (Update: well, the markets are tanking, so it’s not really a good day to judge eBay alone).