Thursday, October 04, 2007

eBay Buys AfterBuy! Is ChannelAdvisor Next?

eBay announced today that they have acquired the German auction management company ViA-Online GmbH which operates the AfterBuy.com site. Normally I would pass over discussing something like this but it strikes me as odd that eBay would reach out to buy an auction management company. If they are getting into that business than where does that put their relationship with a company like ChannelAdvisor. CA has been aggressively expanding in international markets and now appears to be competing with eBay in Germany after this move.

How long before eBay makes an attempt to acquire CA? Is it likely? I don't know I'm still trying to figure out why they are getting into the auction management business. If Bay management believes they need to own that part of the transaction than CA would certainly be a prime target for acquisition. This will be interesting to watch.

Who knows, maybe then they could stop Scot Wingo from blogging.

2 comments:

Chris said...

eBay acquire them? eBay already own a nice chunk of ChannelAdvisor anyway ;-)

Randy Smythe said...

Chris, yeah they own a chunk of CA but don't control CA. eBay wants to control the companies they own.

They own a piece of Craigs List but can't get control so they brought Kijiji to the US. Since they bought 100% of this coming in Germany it seems to me to be a sign they want that extra 2% of each transaction.

This looks to me like a similar play. CA wasn't entrenched in Germany so this move made sense (if I am on the right track).

With CA buying Marketworks it makes even more sense for eBay to own CA. Scot Wingo is not Craig Newmark. If he gets an offer that he feels is too good to turn down then he will take it. I can't see any other reason for the purchase of AfterBuy but I've been wrong before.

Of course Scot could respond to this post and tell me I'm way off base.