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Yes, the loan is the leverage. It's secured against the assets of eBay. If the acquisition fails to produce efficiencies the resulting company has a bunch of ex
by hdndjsbbs 5mo ago
Yes, the loan is the leverage. It's secured against the assets of eBay. If the acquisition fails to produce efficiencies the resulting company has a bunch of extra, arguably unnecessary debt from the acquisition that a free-standing eBay wouldn't have.
- 59percentmore 5mo agoBig if. I think you could frame the debt as lacking necessity but presenting opportunity.
- hdndjsbbs 5mo agoIn theory eBay should be one of those bubbly dot-com companies that kind of settled into a lifestyle business by virtue of longevity. It's no longer commanding insane multiples but it has revenue and a dedicated fanbase. They sold off Paypal which was (afaik) the only stable/growing part of the company. So you're taking a big, but slow-changing auction website and stapling it to a dying brick-and-mortar retail business which survives on meme stock issuance and their die-hard fanbase gambling.