As expected, eBay laid off 10 percent of its workforce, totaling about 1000 workers. But even as the company slims down for hard times, it found the capital to make two purchases: online payment company Bill Me Later, and a classifieds firm based in Denmark.
Bill Me Later, which enables people to pay in installments for purchases across sites like WalMart, Apple and US Airways, reportedly cost $820 million in cash and $125 million in outstanding options. Previous investors include Amazon.com.
Last month eBay announced it would cease accepting money orders and checks for online purchases, leaving only PayPal as a means of paying for auction purchases and seller fees.
PayPal accounts for one-third of eBay's revenue — which in some ways justifies the Bill Me Later buy, according to CEO Bill Donahoe: "PayPal and Bill Me Later just go together," he said, adding that the incorporation of Bill Me Later could help lower transaction expenses.