Tuesday, November 21, 2006

eBay To Transfer Control of EachNet to a Local Company

In an email to eBay investors from Bob Peck of Bear Stearns, Bob states:

"According to SOHU, one of the largest online portals in China, eBay will transfer the operation of eBay EachNet to Tom Online at the end of 2006. The report states further that eBay will pay $200M-$300M for shares of Tom Online and drop the EachNet name. eBay EachNet is eBay’s Chinese platform and Tom Online is one of the largest wireless Internet voice and data companies in China offering services such as SMS, MMS, interactive voice response (IVRs) and ring-tone services."

This may be a positive development for eBay shareholders as eBay has found it increasingly more difficult to make the China operations work.