There’s a touch of ecommerce fever stateside especially when it comes to the heady world of corporate politics. Firstly, Carl Icahn’s attempts to spin off PayPal from eBay Inc., and appoint two of his own placement to the eBay board, continue apace with the exchanges becoming increasingly bullish on both sides.
In the background there is considerable excitement about Alibaba’s IPO in the US. Not only will this generate hard US currency for the Chinese company but it will generate a fair chunk of wedge for Yahoo too, which holds a chunk of stock in Alibaba.
And another rumour has surfaced, fuelled by the general opinion that eBay Inc. is valued at less than the sum of its parts. One WEall Street analyst has suggested that eBay Inc. would be a good match and acquisition by Google.
He says: “While we see potential benefits for PayPal operating independently, this scenario could prove very challenging for eBay, and as an alternative, a combination with Google could be a “best of both worlds” opportunity. Together with eBay/PayPal, Google would be in a much stronger position to fend off well-capitalized competitors. Specifically, we note that Larry Page has shown that he is open to large deals, and both companies would likely be stronger together in the significant technology and user arms race unfolding with Amazon, Apple and Facebook.”