EBay (EBAY) Looks to Expand in China & Japan With the Help of Acquisitions
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The WSJ reports that eBay Inc. (Nasdaq: EBAY) is currently evaluating and considering strategic acquisition targets in Japan and China.
The company plans on expanding its mobile, logistics, and shipping capabilities in Asia as it is forecasted to be the fastest growing region for the company over the next five years, which has also been the trend over the past five years. Jay Lee, Asia-Pacific managing director for eBay, noted that Asia will account for one third of the company’s overall sales in the future but did not offer any exact timeframe.
Last year, eBay and PayPal had cross-boarder sales of roughly $4 billion from the Asia-Pacific region. The company also generated $543 million in total cash flows for the second quarter of 2011 and finished the quarter with $1.2 billion in total cash and equity investments. This will allow them to present attractive companies with offers in which they may not be able to refuse.
Acquisitions are nothing new to the company as it closed on six acquisitions alone in the second quarter. Some of the acquisitions include companies like Magento for an undisclosed sum, GSI Commerce for $2.4 billion, and Zong for $240 million.
Along with Asia, Mr. Lee highlighted that eBay is also looking at the possibility of opening new local-language sites in Brazil and Russia as they are currently witnessing strong growth in these regions.
The company plans on expanding its mobile, logistics, and shipping capabilities in Asia as it is forecasted to be the fastest growing region for the company over the next five years, which has also been the trend over the past five years. Jay Lee, Asia-Pacific managing director for eBay, noted that Asia will account for one third of the company’s overall sales in the future but did not offer any exact timeframe.
Last year, eBay and PayPal had cross-boarder sales of roughly $4 billion from the Asia-Pacific region. The company also generated $543 million in total cash flows for the second quarter of 2011 and finished the quarter with $1.2 billion in total cash and equity investments. This will allow them to present attractive companies with offers in which they may not be able to refuse.
Acquisitions are nothing new to the company as it closed on six acquisitions alone in the second quarter. Some of the acquisitions include companies like Magento for an undisclosed sum, GSI Commerce for $2.4 billion, and Zong for $240 million.
Along with Asia, Mr. Lee highlighted that eBay is also looking at the possibility of opening new local-language sites in Brazil and Russia as they are currently witnessing strong growth in these regions.
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