Ebay about to be acquired?

[hioctane62]

https://www.yahoo.com/news/m/271ad93f-75df-3502-a94f-2b7436241e3b/ebay-reportedly-gets.html 

NYSE owner Intercontinental Exchange Inc. approached eBay with an offer that could value the e-commerce giant at more than $30 billion, the Wall Street Journal reported Tuesday, citing unnamed sources.

The Journal reported that ICE had approached eBay in the past and did so again recently, but that the two companies aren’t currently in formal talks.

Both eBay and ICE declined to comment on the report.

“It’s ICE’s longstanding policy not to comment on rumors or speculation related to (mergers and acquisitions),” ICE spokesman Josh King told the Silicon Valley Business Journal in an email.

[uncseniorsportsfan]

This rumor has analysts baffled - they can't come up with a good reason why ICE would want to buy eBay.  

[slippinjimmy]

Baffled with good reason, I can't even come up with a fantasy reason why this would happen.

FYI - eBay's current market cap is 28 billion, any offer would have to be substantially higher than 30 billion for shareholders to go along with any deal.

This speculation sure smells like a pump and dump!

[mam98031]

For those that see the acronym ICE and immediately think of the Federal Immigration Service, that is a different ICE than is being talked about here.

https://en.wikipedia.org/wiki/Intercontinental_Exchange

https://www.google.com/search?q=ice&oq=ice&aqs=chrome..69i57j0l4j69i60j69i61j69i60.550j0j4&sourceid=...

[uncseniorsportsfan]

A few analysts on CNBC were just speculating on this.   

One said that ICE may want to use the eBay auction platform to get in the crypto currency business as eBay was less regulated than the exchange.    

Another speculated that Elliot and Starboard are pressuring the eBay board to sell everything as the promised marketplace turnaround has not taken place.

One said this would be a great deal for eBay because ICE could improve the marketplace from a technological standpoint to make it more competitive.  

The one that made no sense was the guy who said that the eBay marketplace could used to compete with Ameritrade.

Take your pick.....

[crescentstation]

Yes, it's the German high speed train service!

[mam98031]

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@crescentstation wrote:
Yes, it's the German high speed train service!

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What? 

ICE = Intercontinental Exchange.

My first link above was correct.  Not sure what happened to that second one.

[uncseniorsportsfan]

Today's CNBC update is that ICE has confirmed that they have explored the possibility of acquiring eBay, but there have been no talks between them.   Yesterday on the news eBay's stock spiked up while ICE's stock took a big hit which may give them second thoughts.  

[dazzlecity]

well Jeff Sprecher is an interesting fellow and not stupid by any means - if this is true he must have some kind of angle besides making money with eBay - That said his general scenario is making money - perhaps his successful reputation might possibly jump start eBay but whereas eBay owns no inventory and the really good sellers (well some) are already gone. There would have to be some elbow work done - not sure if he's into that 

He's sure got the chops to tackle big problems 

ir.theice.com/governance/board-of-directors

[coolections]

Update: for those who wanted for some crazy reason for Ebay to be sold it is not happening. It was confirmed this morning on the CNN business page.

[mam98031]

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@coolections wrote:

Update: for those who wanted for some crazy reason for Ebay to be sold it is not happening. It was confirmed this morning on the CNN business page.

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https://www.cnn.com/2020/02/05/investing/nyse-ebay/index.html

[wesk_36]

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@slippinjimmy wrote:

Baffled with good reason, I can't even come up with a fantasy reason why this would happen.

FYI - eBay's current market cap is 28 billion, any offer would have to be substantially higher than 30 billion for shareholders to go along with any deal.

This speculation sure smells like a pump and dump!

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I agree. "Pump and dump" is a time-worn strategy from the shady world of stock day-trading.

Planted and unfounded rumors are all it takes to manipulate the market for the benefit of day-traders.

Buy on the rumor, sell or short on the truth.

With ICE, it was short or sell on the rumor, buy on the truth. ( up 34.5% )

The truth is;

 "We are not in negotiations regarding the sale of all or part of eBay," ICE concluded."

"Shares of eBay soared Tuesday after rumors swirled on Wall Street that the company synonymous with Wall Street, New York Stock Exchange owner Intercontinental Exchange, was thinking of buying the company. Alas, it's not to be."

...."Shares of ICE (ICE), which plunged 7.5% Tuesday on the merger rumors, rose 34.5% in early trading Wednesday. eBay (EBAY) fell 2% Wednesday following a nearly 9% spike a day earlier."

https://www.cnn.com/2020/02/05/investing/nyse-ebay/index.html

[writertypes]

One of the ICE execs was just trying to scare up a few views and bids on his kid's baseball card collection.