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What a mess that spin-off showed eBay to be, too - At IPO, Paypal's market cap was nearly 150% of eBay's - Meaning that investors valued all of eBay as a 15+ Bi
by GauntletWizard 8y ago
What a mess that spin-off showed eBay to be, too - At IPO, Paypal's market cap was nearly 150% of eBay's - Meaning that investors valued all of eBay as a 15+ Billion liability on Paypal itself. Given their complete lack of movement since, that's not a surprise.
- adventured 8y agoeBay is worth $37 billion today. They very clearly were not being valued at a negative market cap. There are no examples in recent US stock market history of a large, extremely profitable corporation with a positive balance sheet being valued at a negative market cap. There's a reason for that. The combined unit was suffering a discount. That's precisely why PayPal was separated. If your premise were right, eBay today would be worthless, not trading for $37 billion.
- jack9 8y ago> eBay is worth $37 billion today > extremely profitable corporation Yup, layoffs look like a classic pump and dump to fiddle with the numbers for a sale.
- hshehehjdjdjd 8y ago300 positions is not going to significantly alter ebay’s profitability. It seems more likely to me that this is an occasion to drop a group of low performers all at once, or to make a certain job family redundant.