eBay and a whole lot more
As we examine the auctioneer monster that is Ebay, it’s important to consider what else the company is doing to stay competitive in the marketplace. As Google has set the standard by acquiring literally hundreds of internet startups, Ebay has followed suit and made some allies of their own. Consider Paypal, Skype and most recently Fraud Sciences a company acquired just yesterday.
PayPal To Pay $169M For Fraud Sciences
PayPal will pay $169M in cash to acquire Fraud Sciences, an Israeli company that develops online risk and security tools.
PayPal, a unit of eBay (NSDQ: EBAY), will use Fraud Sciences’ technology to enhance the fraud management systems of both PayPal and eBay.
FraudScience has raised $7M from BRM Capital (which holds a 40% stake), angel investor Guy Gamzu, and Redpoint Ventures.
Founded by former Israeli intelligence experts, Fraud sciences set itself up to sort out legitimate bidders from suspicious bidders. The company was founded in 2001 but didn’t launch until the end of 2006.
By expanding their offerings, Ebay remains a forward looking company with growth potential. Often times these strategic acquisitions occur not only to expand one’s own market but to stop the competitor from expanding theirs. For instance, when Microsoft acquired just under a 2% stake in Facebook they did it with a strategic objective. When Intuit bought billpay systems, they did it to block Microsoft from the market. Ebay continues to be a power player in the market.
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Tags: ebaY, Fraud Sciences, Paypal, Skype