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New York (pte036/06.06.2005/14:00) - EBay http://www.ebay.com has acquired the online shopping comparison website Shopping.com for a whopping US$620 million. By purchasing Shopping.com, the online consumer website is trying to appease its sellers, who have been unhappy about a recent hike in listing fees, by hopefully bringing in more online business.
The recent deal is eBay's largest acquisition since 2002, when it bought PayPal for $1.5 billion.
Head of eBay in North America, Bill Cobb, said that there would be a new pool of potential buyers due to the deal. "This is about continuing to fuel our biggest business," he said.
The turnover of EBay's largest markets - America and Germany - has recently slowed down. In the US revenues dropped from 40 per cent in 2004 to 20 per cent during the first quarter of this year.
Shopping.com, with offices in the US, Britain and France, is costing EBay $12 a share, a 20 per cent premium. Since its founding in 1998 the company's stocks have fallen and risen, and are now falling again. The free user service charges retailers for referring shoppers to their websites.
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